Mali partners with Russia to increase gold incomes

(MENAFN) Mali’s government is teaming up with the Russian Yadran Group to construct a state-owned gold refinery in a bid to maximize profits from its gold production, Reuters reported on Friday, quoting the country's Minister of Economy and Finance, Alousseni Sanou.

The joint venture, SOROMA-SA, will be majority-owned by the Malian state with a 62% share, while Yadran will control the rest. The new refinery, slated for a site near Bamako’s airport, is expected to process up to 200 metric tons of gold each year — nearly four times the country’s current processing capacity of about 50 tons.

The legislative body in Mali recently approved this arrangement, and the venture aims to help miners align with the country's revamped mining code. The Sahel nation, Africa’s second-largest gold producer, amended its mining legislation in 2023 to allow the government to take up to a 30% share in new projects and raise royalties to increase state revenue.

Similar policy moves have been made by neighboring Burkina Faso, Guinea, and Niger, reflecting a growing trend of state intervention in resources. Currently, Mali’s two existing refineries lack international certifications, which limits their ability to sell directly into the global market. The Ministry of Mines said this venture with Yadran will help the country achieve those certifications and become more competitive.

The announcement comes amid disputes between Mali’s transitional government and Western mining companies. Canadian mining giant Barrick is currently involved in a legal battle with Bamako after the government shut its operations and demanded back taxes. Furthermore, in Niger, French nuclear company Orano recently lost its license to a key mine and its subsidiary was taken over by the government.

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