Mali Commences Construction of Gold Refinery Backed by Russia

A new gold refinery project, supported by Russia, officially broke ground in Mali on Monday. The country’s military leadership views this development as a significant step toward gaining full authority over its mineral wealth.

The facility, designed to handle up to 200 tons of gold annually, will be constructed through a partnership involving Russia’s Yadran Group along with a Swiss-based investment firm. Mali holds the majority stake in the project.

Last year, Mali’s interim president Colonel Assimi Goita stated that the government intends to mandate all mining companies to refine their gold within national borders under updated mining laws. However, he did not mention a specific timeline for when this rule would be enforced.

“This deprives our country of substantial revenues that could be used for the development of its economy.”

The government has yet to announce when the plant will be completed. Once operational, the facility will process the entirety of Mali’s gold output into dore bars prior to export. Its designed capacity is nearly quadruple the country’s current annual gold production.

Reinforcing Goita’s vision, Yadran’s President Irek Salikhov remarked during the launch ceremony that the new refinery would serve as “a regional center for processing gold extracted not only in Mali, but also in neighboring countries — like Burkina Faso.”

West Africa remains a leading source of gold, yet the region lacks an internationally recognized refinery, despite various past efforts — including those by the top gold producer on the continent — to establish one.

The refinery construction aligns with sweeping reforms introduced under Goita’s leadership since he assumed power in 2021 and distanced the country from former Western allies. Mali’s revised mining laws, similar to those enacted in nearby Guinea, Niger, and Burkina Faso, have raised concerns among foreign investors.

Earlier this month, a Malian court temporarily placed the Loulo-Gounkoto gold complex — operated by a Canadian mining firm — under state supervision, intensifying an ongoing disagreement over tax-related matters.

Goita emphasized that the upcoming refinery would help Mali improve oversight of its gold output and trade. Like several other African nations, Mali suffers significant financial losses every year because of illegal gold smuggling and the lack of certified refining and tracking systems.