Mali strikes gold refining deal with Russia to curb export losses

Mali’s government has announced plans to establish a state-controlled gold refinery in partnership with Russian firm Yadran, aiming to increase earnings from its gold sector.

Finance Minister Alousseni Sanou announced that the newly formed company, SOROMA-SA, will be 62% owned by the Malian government, with Russian firm Yadran holding the remaining 38% stake.

Set to be constructed on a five-hectare site near Bamako’s international airport, the refinery will have the capacity to process up to 200 metric tons of gold annually, a significant leap from Mali’s current processing capacity of about 50 tons, according to Reuters.

Mali, Africa’s second-largest gold producer, currently lacks an internationally certified refinery. The country’s two existing facilities have been unable to meet the standards required by global bodies like the London Bullion Market Association (LBMA), forcing miners to refine their gold abroad. The new refinery will produce gold with a purity of 99.5%, adhering to international certification standards.

Sanou said the refinery will help miners comply with the country’s revised mining code, which was designed to increase state participation, raise royalty rates, and mandate domestic gold refining.

These reforms echo similar moves by regional neighbours like Burkina Faso, Niger, and Guinea, which have also sought to localize more of the mining value chain, sparking concern among Western investors even as ties with Russia and China deepen.

Since seizing power in 2020, Mali’s military government has vowed to overhaul the mining sector to ensure the state captures a larger share of gold revenues. These reforms are projected to boost annual government income by about $950 million, representing nearly 20% of the national budget.

Mali’s transitional president, Assimi Goita, is expected to officially launch construction of the refinery later in June, according to a spokesperson from the Ministry of Mines.