Mali has moved to tighten its grip on the mining supply chain by taking a 51% controlling stake in a new industrial explosives company partnered with China’s Auxin Chemical Technology.
- Mali has taken a 51% ownership stake in a new explosives company in partnership with China’s Auxin Chemical Technology.
- The venture aims to establish local production of civil-use explosives, thereby decreasing import dependencies.
- China’s involvement includes providing financial and technical expertise, fitting into Beijing’s extended industrial influence in Africa.
- The move reflects Mali’s strategy to strengthen its extractive sector amidst regional insecurity and geopolitical shifts.
The approval, granted by Mali’s Council of Ministers, positions the government at the centre of a business that supplies explosives for gold, lithium, and quarrying operations, inputs that are essential to the country’s extractive economy and closely linked to national security.
The joint venture, FARATCHI-CO SA, announced in 2024, will produce civil-use explosives locally, reducing reliance on imports. The move highlights rising state intervention in strategic sectors and further shows Beijing’s expanding industrial footprint across the Sahel.
Authorities said the majority stake allows the state to strengthen oversight, improve supply reliability, and secure sensitive materials in a context of regional insecurity.
State control meets China’s industrial push
China’s Auxin Chemical Technology retains a 49% stake, providing financing and technical expertise to build the plant within 12 months.
Auxin already supplies explosives to six African countries, drawing on the resources of its parent, China’s NORINCO Group, a major industrial and defense conglomerate.
Mali’s move aligns with the 2023 mining code, which increased mandatory state equity in mining projects and strengthened local-content requirements, reflecting efforts to capture greater value from natural resources amid a shifting geopolitical environment.
Alongside Burkina Faso and Niger, Mali has pivoted toward China and Russia, raising concerns among Western investors as governments expand gold refining, uranium, and security-related projects.
Despite hosting roughly 30 industrial gold operations, including 15 large mines and two lithium projects, Mali’s production has faced headwinds. Regulatory reforms and persistent insecurity contributed to a 23% drop in gold output last year, according to the Mines Ministry.
By securing a majority stake in explosives production, Bamako is betting that combining state control with Chinese industrial expertise will stabilise a critical supply chain even as geopolitical dynamics in the Sahel continue to evolve.
