Mali Collaborates with Russian Enterprise to Build Gold Smelter

According to a report by Mining Weekly, citing Reuters, Mali's Minister of Finance revealed that the country would collaborate with Russia's Yadran to construct a state-owned gold refinery. As gold prices rise, this West African nation hopes to secure greater revenue from its resources.

Alousseni Sanou, Mali's Minister of Economy and Finance, stated that the government would hold a 62% stake in the enterprise, named SOROMA-SA, with the remaining shares held by Yadran.

Sanou disclosed that the gold smelter would be built near Bamako Airport, spanning 5 hectares, and would have an annual gold production capacity of 200 mt, four times the current 50 mt gold production in Mali.

Sanou said that Mali's National Transitional Council approved the equity plan on the 12th, and the company would assist miners in complying with the revised mining code.

Mali, Africa's second-largest gold producer, has amended its mining code to increase the state's equity in mining companies, raise gold royalties, and mandate domestic processing. This move follows the examples of Burkina Faso, Niger, and Guinea.

Mali's Ministry of Mines stated that the country's two gold smelters have not obtained certification from the London Bullion Market Association (LBMA), forcing its miners to process gold overseas.

A senior official from the Ministry of Mines, who wished to remain anonymous, said that Yadran would help obtain the certification, as this obstacle has compelled the country's existing smelters to seek overseas markets.

A spokesperson for the Ministry of Mines revealed that at month-end, Assimi Goita, the leader of Mali's military government, would attend the groundbreaking ceremony for the smelter.