Mali to Build Gold Refinery in Partnership with Russia
In a strategic move, Mali is set to establish a state-controlled gold refinery with the Russian firm Yadran. This initiative intends to boost earnings from its gold sector, reshaping the nation’s economic landscape and potentially attracting international attention.
Malian-Russian Partnership
The Malian government will own 62% of the newly formed company, SOROMA-SA, while the Russian firm Yadran will hold the remaining 38% stake, according to Finance Minister Alousseni Sanou. The refinery is to be constructed near Bamako’s international airport.
The facility will be capable of processing up to 200 metric tons of gold annually. That is a significant increase from the country’s current capacity of approximately 50 tons, as reported by Reuters.
Meeting International Standards
Mali, the second-largest gold producer in Africa, currently lacks an internationally certified refinery. Existing facilities cannot meet global standards, compelling miners to refine their gold overseas. The new refinery aims to produce gold with 99.5% purity, adhering to international certification standards.
Impact on the Mining Sector
The refinery should aid miners in complying with the revised mining code. This code is designed to increase state participation, boost royalty rates, and mandate domestic gold refining. These changes mirror similar actions by nearby nations like Burkina Faso, Niger, and Guinea.
“The refinery will help miners comply with the country’s revised mining code, which was designed to increase state participation, raise royalty rates, and mandate domestic gold refining.”
—Alousseni Sanou, Finance Minister
These reforms are projected to increase annual government income by roughly $950 million. This figure represents nearly 20% of the national budget. For context, in 2023, gold accounted for nearly 75% of Mali’s total exports (Statista).
Future Prospects
Assimi Goita, Mali’s transitional president, is expected to officially launch the refinery’s construction later in June, as stated by a Ministry of Mines spokesperson.
