Mali and Russia Set to Establish West Africa’s Largest Gold Refinery
Mali has announced a significant milestone in its economic partnership with Russia, revealing plans to construct a gold refinery in the capital city, Bamako.
The deal, part of several bilateral agreements between the two nations, outlines the establishment of a refinery boasting an impressive 200-tonne annual capacity, positioning it as the largest of its kind in West Africa.
The memorandum of understanding (MoU), while non-binding, signifies a promising collaboration between Bamako and Moscow. However, no specific timeline has been set for the refinery’s construction despite the four-year term outlined in the agreement.
In an interview with national television station ORTM, Minister of Economy and Finance, Alousseni Sanou, disclosed Mali’s intention to gain comprehensive control over its gold production by building the refinery.
Additionally, the initiative aims to enhance oversight of regulations, taxes, and duties governing the gold industry.
Mali, which observed an 8.4% surge in gold production to 72.2 tonnes in 2022 compared to the previous year, primarily exports to countries such as South Africa, Switzerland, and Australia.
This recent deal signifies an escalating collaboration between Mali and Russia, which has seen a significant upturn following Mali’s coup in May 2021.
Beyond the gold refinery agreement, Bamako has engaged with Russian state energy company Rosatom for nuclear energy production and welcomed a Russian firm’s proposal to construct a solar power plant in the country.
However, this increasing cooperation aligns with reports by the Washington-based Institute for the Study of War (ISW), indicating Russia’s overt support for military juntas in West Africa, including Mali.
The report highlights Moscow’s integration of the Russian private military company Wagner Group into the army structure after a mutiny staged by the group in June 2023.
Wagner Group has been active in Africa, often aligning with unpopular, authoritarian leaders and profiting from mining concessions as part of their payments.
In September, a high-level Russian military delegation visited Bamako, Mali, meeting with defense ministers from Burkina Faso, Niger, and Mali, along with junta leaders.
Concurrently, these West African nations signed a security pact to pledge mutual support in the face of internal rebellion or external aggression.
