Western firms have since been facing a tough time – the latest example being Mali’s decision to put a huge gold mine, run by Canadian giant Barrick, into administration, effectively bringing it under state control
Mali’s military junta has started building a gold refinery in partnership with a Russian conglomerate, the Yadran Group. The project would embody the West African nation’s assertion of its “economic sovereignty”, and ensure the nation benefited from its mineral wealth, military leader Gen Assimi Goïta said.
He has strengthened military and economic ties with Russia since seizing power in a coup in 2021, while reducing relations with former colonial power France and other Western nations. This reflects a broader trend in the region, with neighbouring Burkina Faso and Niger also pivoting towards Russia after the overthrow of civilian leaders.
Western firms have since been facing a tough time – the latest example being Mali’s decision to put a huge gold mine, run by Canadian giant Barrick, into administration, effectively bringing it under state control. On Monday, Gen Goïta – along with Yadran Group head Irek Salikhov – attended a ceremony for the construction of the refinery, which will have a 200-tonne capacity, in Senou, not far from the capital, Bamako.
Mali would having a majority stake in the refinery, and Yadran Group a minority share. Salikhov hailed the plant as a “win-win” for both nations, saying the aim was to turn the refinery into “a regional centre for processing gold extracted not only in Mali, but also in neighbouring countries like Burkina Faso”.
No date has been announced for its completion, but Gen Goita said: “It’s a long-awaited dream of the Malian people, and today it’s becoming a reality.” The plant would enable Mali to “refine all the gold mined on its soil, ending decades of crude export to foreign refineries”, he added.
Mali is Africa’s second-biggest producer of gold, but many of its people remain poor 65 years after independence. Despite West Africa’s status as a major gold producer, the region has lacked a functional and globally certified gold refinery.
This has been a long-standing gap in the market despite previous attempts to establish such a facility, including by Ghana, the continent’s leading gold producer. Mali’s interim president Colonel Assimi Goita has emphasised the refinery’s role in improving the tracking of gold production and exports.
He pointed out that, like many African nations, Mali suffers significant financial losses due to gold smuggling, exacerbated by the lack of certified refineries and traceability programmes. The construction of the refinery is part of broader mining reforms under Mali’s military leader, who assumed power in 2021.
These reforms have included a revised mining code that aligns with changes in neighbouring countries such as Guinea, Niger and Burkina Faso, causing unease among investors. Tensions have been evident in Mali’s mining sector, as seen with the recent court decision to place the Loulo-Gounkoto gold complex operated by Canadian mining company Barrick under temporary state control amidst a tax dispute.
