Mali has begun building a new gold refinery backed by Russia, a move its military-led government says will help the country gain greater control over its natural resources.
- Mali is constructing a new gold refinery supported by Russian investment to enhance control over its natural resources.
- The refinery will be majority owned by the Malian government with a 38% stake held by Russian firm Yadran.
- This initiative aligns with regional efforts to mandate domestic processing of gold for economic benefits.
Mali has begun building a new gold refinery backed by Russia, a move its military-led government says will help the country gain greater control over its natural resources.
The newly formed refinery will be 62% owned by the Malian government, with Russian firm Yadran holding the remaining 38% stake.
Speaking at the groundbreaking ceremony, interim President Colonel Assimi Goïta said the facility is part of broader efforts to require all mining companies to refine gold domestically under a revised mining code, though no timeline has been set for enforcement, according to Reuters.
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The refinery marks a shift across the Sahel region, where countries like Guinea, Niger, and Burkina Faso have also updated mining laws to mandate local processing, aiming to add value to exports and retain more revenue.
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Since 1980, Mali’s gold has been exported unprocessed to countries like the UAE, South Africa, and Switzerland, costing the country valuable income that could support economic development, according to Goïta.
Despite the country’s status as Africa’s second-largest gold producer, it lacks an internationally certified refinery. The country’s two existing facilities have been unable to meet the standards required by global bodies like the London Bullion Market Association (LBMA), forcing miners to refine their gold abroad.
The new refinery will produce gold with a purity of 99.5%, adhering to international certification standards.
Constructed on a five-hectare site near Bamako’s international airport, the refinery will have the capacity to process up to 200 metric tons of gold annually, a significant leap from Mali’s current processing capacity of about 50 tons.
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The refinery is part of Goïta’s broader mining reforms since coming to power in 2021 and distancing Mali from Western allies.
Goïta added that the refinery will improve gold traceability and help curb the billions lost to smuggling, a challenge many African nations face in the absence of certified refineries and tracking systems.
Since seizing power in 2020, Mali’s military government has vowed to overhaul the mining sector to ensure the state captures a larger share of gold revenues. These reforms are projected to boost annual government income by about $950 million, representing nearly 20% of the national budget.
