Mali has started construction on a new gold refinery in Senu, aiming to increase its control over mineral resources. Expected to produce 200 tonnes of gold per year worth about $130 billion, the state will maintain a controlling share in the facility. President Assimi Goita signaled a shift in mining policies to encourage domestic processing, aligning with trends in the Sahel region.
Mali has officially commenced construction on a gold refinery, aiming to bolster control over its mineral resources, according to a report by Reuters. The new facility is located in Senu, situated on the southern fringe of Bamako, the capital. This endeavor is being undertaken by Yadran Group, a Russian industrial firm, in partnership with an unnamed Swiss investment company.
Upon completion, this refinery will have the capacity to produce 200 tonnes of gold annually, translating to an astounding value of roughly $130 billion. This production rate is four times greater than Mali’s current gold output. Despite being one of the world’s leading gold producers, Mali has seen little benefit in revenue from its natural wealth, with tax contributions from international mining corporations fluctuating between $1 billion and $1.4 billion in 2024, while the national per capita GDP lingers below $900.
The ownership of the refinery will be apportioned, but with the state holding a controlling interest. Assimi Goita, the current leader who came to power via a coup in 2021, governs Mali. Elections were previously anticipated, but this month the National Transitional Council endorsed a new bill which grants Goita an additional five-year presidential term. Since assuming power, he has steered Mali away from France toward stronger ties with Russia.
During the groundbreaking ceremony, Goita declared that the refinery would enable Mali to break free from decades of reliance on foreign facilities for gold processing. He emphasized that legislation would be introduced requiring mining companies to refine gold within Mali’s borders, thereby retaining more economic value from their resources.
Reuters has noted that Mali’s initiative marks a broader trend in the Sahel region. Countries like Guinea, Niger, and Burkina Faso have begun amending their mining regulations to necessitate domestic processing of commodities, moving to secure a larger share of their respective value chains.
Goita remarked, “Since 1980, Mali’s gold has been exported for refining and sale to countries such as the United Arab Emirates, South Africa, and Switzerland. This deprives our country of substantial revenues that could be used for the development of its economy.” Additionally, Irek Salikhov, president of Yadran, mentioned that the new refinery is set to become a regional hub for processing gold sourced not only from Mali but also from neighboring nations like Burkina Faso.
In a related development, a Malian court has recently placed Canadian mining company Barrick under state control for a six-month period, stemming from an ongoing tax dispute between the company and the government. This situation underscores Mali’s evolving relationship with foreign mining entities amid attempts to strengthen government oversight of its resource wealth.
In summary, Mali’s groundbreaking on a new gold refinery represents a significant step towards achieving greater control over its mineral resources, particularly gold. With a projected annual output of 200 tonnes, the facility is set to enhance revenue for the state and reduce dependence on foreign processing. As Mali aims to transform its mining landscape, it joins other Sahel nations in revising regulations to boost national economic gains from these industries. The future remains to be seen as the country navigates both its domestic and international partnerships.
Original Source: www.globalconstructionreview.com
