Mali has initiated construction of a new gold refinery backed by Russia, marking a step towards the country’s goal of asserting greater control over its natural resources, according to a Reuters report.
The facility, with a 200 tonne (t) capacity and a controlling stake held by Mali, is a joint venture (JV) with Russia’s Yadran Group and a Swiss investment firm.
The new refinery is expected to become a regional processing hub for gold, not only from Mali but also from neighbouring countries such as Burkina Faso.
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.
