West Africa’s Gold Revolution: Mali is Building Own Refinery

Mali has officially begun construction of a major gold refinery near Bamako, a landmark move aimed at reclaiming national control over its vast mineral wealth. The refinery is being built in partnership with Russia’s Yadran Group and a Swiss investment firm, and is positioned as a bold step in Mali’s march toward economic sovereignty and regional industrial leadership.

President Assimi Goïta, who seized power in 2021 and has since pivoted Mali’s alliances away from France and Western actors towards Russia, presided over the groundbreaking ceremony in Senou, a town on the outskirts of the capital. He was joined by Yadran President Irek Salikhov, who hailed the joint venture as “a win-win for Africa and Russia.”

Reclaiming the Gold Value Chain

The refinery will have the capacity to process 200 metric tonnes of gold annually, quadruple Mali’s current output, and is expected to become a regional hub for refining gold from neighbouring countries such as Burkina Faso and Niger. The Malian state will own a 62% majority stake in the new company, SOROMA-SA, with Yadran holding the remaining 38%.

“Since 1980, Mali’s gold has been exported unrefined to countries like the UAE, Switzerland and South Africa,” said Goïta. “This has deprived our country of vital revenues that could uplift our people. Today, we change that trajectory.”

Mali is Africa’s second-largest gold producer, yet remains one of the continent’s poorest nations, with a GDP per capita of less than $900. Gold accounts for more than 70% of Mali’s export earnings, but decades of reliance on foreign companies and offshore refineries have left the country vulnerable to economic leakage and corporate tax evasion.

Rewriting the Rules of Extraction

The refinery project forms part of a sweeping mining sector overhaul initiated by Goïta’s transitional government. Under Mali’s revised mining code, passed in 2023, all gold must be processed domestically and the state now holds larger stakes in mining companies while also increasing royalties.

This legislative wave mirrors similar moves across the Sahel. Guinea, Niger, and Burkina Faso have also introduced resource nationalist policies in recent years, challenging decades of foreign-dominated mining operations and shifting the power balance in favour of national governments.

A senior official from Mali’s Ministry of Mines confirmed that the refinery would seek London Bullion Market Association (LBMA) certification, addressing a major obstacle that previously forced Malian miners to send raw gold abroad for refinement and sale.

Strained Relations with the West

This assertive stance has not gone unnoticed by Western investors. Just days before the refinery launch, a Malian court placed the Loulo-Gounkoto complex, operated by Canadian mining giant Barrick Gold, under temporary state control as part of an escalating tax and ownership dispute.

The court appointed former Health Minister Soumana Makadji as interim administrator for six months. Barrick has suspended operations and is appealing the decision, which it described as “unjustified” and a violation of due process.

Mali’s government had already blocked gold exports from the complex and seized several metric tons of gold in late 2024. The mine previously accounted for 14% of Barrick’s global output and could generate up to $1 billion in annual revenue if fully operational.

Towards an African Gold Economy

Yadran President Irek Salikhov said the refinery would serve not only Mali, but the entire West African region, enhancing local value addition, traceability, and export revenue.

“This plant is more than infrastructure. It is a symbol of a new gold economy rooted in African ownership and regional integration,” Salikhov said.

The refinery is expected to play a pivotal role in curbing gold smuggling, which has cost African nations billions due to the absence of certified local facilities and traceability systems. Once operational, the plant will process gold into dore bars for direct export.

No official completion date has been given, but the mines ministry confirmed construction would be prioritised for fast-track delivery.

A Broader Shift: From Extraction to Empowerment

The refinery’s launch marks a turning point in Mali’s economic trajectory—and potentially that of West Africa. Rather than merely exporting raw commodities, the region is now embracing value chain localisation, sovereign control, and Pan-African industrial cooperation.

“This is the long-awaited dream of the Malian people, and today it is becoming reality,” Goïta declared at the ceremony. “No longer will Mali be a mere source of raw materials for foreign gain.”

Africa Redefining Its Worth

Mali’s refinery, if successful, will signal a powerful shift in how African states manage their natural resources—not as passive exporters but as active architects of value, development, and sovereignty. It also solidifies Russia’s growing influence in Africa, particularly across the Sahel, amid waning Western partnerships.

In a time of global economic uncertainty and rising gold prices, resource control has become a defining frontier of African self-determination. Mali, by asserting its place at the heart of this movement, is making it clear: Africa’s wealth will no longer be refined elsewhere.