Mali has started construction on a gold refinery projected to produce 200 tonnes of gold annually, worth around $130 billion. This project aims to take control of gold resources and requires local processing by miners. General Assimi Goita, currently ruling Mali, highlighted the importance of ending reliance on foreign refineries. This move aligns Mali with regional trends for increased local processing.
Mali has officially begun construction on a significant gold refinery, breaking ground as reported by Reuters. The government claims this project is a vital step in reestablishing its control over the nation’s mineral resources. Located in Senu, just outside Bamako, the facility will be constructed by Yadran Group, a Russian industrial conglomerate, in partnership with an undisclosed Swiss investment firm.
Once fully operational, the refinery is expected to produce up to 200 tonnes of gold annually, potentially generating around $130 billion in value. This volume represents a substantial increase, quadrupling Mali’s current annual gold output. As one of the top gold producers globally, Mali has often struggled to translate its mineral wealth into financial gain for the state.
Despite its gold production capabilities, Mali’s mining sector has not brought in significant tax revenues, which have fluctuated between $1 billion and $1.4 billion in recent years. For a country with a per capita GDP of less than $900, these numbers suggest a worrying disconnect between resources and revenue.
Ownership of the new refinery will be shared, yet Mali will retain a controlling interest. The country is currently under military rule led by General Assimi Goita, who came to power following a coup in 2021. Although elections were initially planned, recent developments in the National Transitional Council have extended Goita’s presidency for another five years.
Under Goita’s governance, Mali is pivoting away from French influence, looking instead toward Russian partnerships. At the groundbreaking ceremony, Goita emphasized the refinery’s role in helping Mali overcome decades of dependency on international refineries for processing gold, a trend he aims to halt by implementing laws mandating local gold processing.
This decision mirrors a broader trend in the Sahel region, where neighboring nations like Guinea, Niger, and Burkina Faso are also modifying their mining regulations to require local processing, thereby attempting to capture more value from their resources. 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.”
Irek Salikhov, president of Yadran, hinted at the broader implications of the refinery, noting it will serve as “a regional center for processing gold extracted not only in Mali but also in neighboring countries like Burkina Faso.” Meanwhile, in a separate development, a Malian court has placed Canadian mining company Barrick under state control for a period of six months due to a tax dispute with the government.
Mali’s groundbreaking on its new gold refinery marks a significant change in the nation’s approach to mineral wealth, emphasizing local processing and revenue retention. The project, once completed, not only aims to boost national gold production significantly but also reflects a broader regional trend towards self-sufficiency in mineral processing. As Mali navigates its political landscape and relationships with foreign powers, this initiative could fundamentally change the economic fortunes of the country.
Original Source: www.globalconstructionreview.com
