Mali is set to establish a state-controlled gold refinery in partnership with Russian firm Yadran, with the aim of boosting earnings from its gold sector. The new company, SOROMA-SA, will be majority-owned by the Malian government at 62%, with Yadran holding the remaining 38% stake. The refinery, to be built near Bamako’s international airport, will have the capacity to process up to 200 metric tons of gold annually, a significant increase from Mali’s current processing capacity of 50 tons.
As Africa’s second-largest gold producer, Mali currently lacks an internationally certified refinery, forcing miners to refine their gold abroad. The new refinery will produce gold with a purity of 99.5%, meeting international certification standards. These efforts align with the country’s revised mining code, which aims to increase state participation, raise royalty rates, and require domestic gold refining.
Similar reforms in neighboring countries like Burkina Faso, Niger, and Guinea have raised concerns among Western investors, while Mali strengthens ties with Russia and China. Since the military government took power in 2020, Mali has been focused on overhauling the mining sector to capture a larger share of gold revenues. These reforms are expected to increase annual government income by approximately $950 million, representing nearly 20% of the national budget.
Transitional president Assimi Goita is scheduled to officially launch the construction of the refinery in June, signaling a significant step towards reshaping Mali’s gold sector. The establishment of the state-controlled refinery signifies a strategic move towards maximizing the potential of Mali’s gold resources and enhancing economic growth in the region.
