Mali Begins Construction of $130 Billion Gold Refinery to Reclaim Mineral Wealth

Mali begins construction of a $130 billion gold refinery to reclaim mineral wealth. The refinery, managed by Yadran Group and a Swiss investor, aims for an output of 200 tonnes a year, significantly increasing local production. Under military leadership, Mali seeks to change laws mandating domestic gold processing, reflecting a shift in the Sahel region’s mining policies.

In a notable development, Mali has officially commenced the construction of a gold refinery. The project has been reported by Reuters and aims to help Mali’s government regain control over its significant mineral wealth. Located in Senu, a town near the capital Bamako, the refinery construction is being overseen by Yadran Group, a Russian industrial firm, along with an unnamed Swiss investment company.

Once completed, this ambitious facility is projected to produce around 200 tonnes of gold annually, potentially valued at an eye-watering $130 billion. For context, this output is expected to be quadruple what Mali currently produces. As one of the largest gold producers globally, Mali has struggled to translate this into significant financial benefits for the state. In recent years, tax revenues from foreign mining firms have fluctuated, with figures ranging from $1 billion to about $1.4 billion in 2024. Comparatively, Mali’s per capita GDP remains worryingly low at under $900.

Ownership of the newly built refinery will be divided, with the state holding a controlling interest. Interestingly, Mali is currently led by General Assimi Goita, who came to power after a coup in 2021. Although elections were initially planned, the National Transitional Council has recently extended Goita’s president term by five years.

Under Goita’s leadership, there has been a significant pivot away from France, Mali’s former colonial ruler, towards Russia. During the ceremony marking the groundbreaking of the refinery, Goita emphasized that this step would eliminate Mali’s long-standing reliance on foreign refineries for gold processing. Moreover, he indicated that national laws would be revised to ensure all gold mined in the country must be processed locally.

This initiative by Mali mirrors a broader trend in the Sahel region, with countries like Guinea, Niger, and Burkina Faso also revamping their mining regulations to encourage local processing of resources. Goita elaborated, stating, “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, who heads Yadran Group, mentioned the refinery’s potential to act as a “regional center for processing gold extracted not only in Mali but also in neighboring countries like Burkina Faso.” In related news, a Malian court recently placed Canadian mining company Barrick under state control for six months amid a tax dispute with the government.

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The groundbreaking of Mali’s new gold refinery marks a significant step toward enhancing the nation’s control over its mineral wealth. With the refinery projected to produce 200 tonnes of gold annually, the government aims to transform its current economic landscape by mandating local processing. As Mali seeks to improve its financial returns from gold production, this initiative aligns with a regional trend in the Sahel to reclaim more value from natural resources. Additionally, the ongoing political shifts under Goita’s leadership represent a critical juncture for Mali’s future in the global mining sector.

Original Source: www.globalconstructionreview.com