Mali, the second-biggest gold producer in West Africa, wants to extract as much money as possible from the yellow metal’s mining. Now that the mining code has been updated to encourage more national involvement in mining initiatives, the government is focusing on local processing.
Mali and Russia have inked a memorandum of understanding for the establishment of a regional gold refinery. It would be the biggest in the West African sub-region, capable of producing 200 tonnes annually, which would allow the nation to boost its gold mining earnings.
The memorandum of understanding is effective for four years, according to the reports. The article referenced a statement given by Economy and Finance Minister Alousséni Sanou on national television. Although a construction schedule has not been provided, it is possible that the time frame will be utilised to work out the details of a legally binding contract, which would include financing the project.
Official data indicates that in 2022, Mali ranked third on the continent, behind South Africa and Ghana, and as the second-largest producer of gold in West Africa. Estimates for artisanal gold output were added to the 66.2 tonnes of industrial production that was produced last year, for a total of 72.2 tonnes. The sector’s public revenue totaled a record 763.7 billion FCFA.
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The government’s proposal to construct a gold refinery is a component of a larger plan to boost the economy’s contribution from the mining industry. President Assimi Goïta enacted a new mining code earlier this year in order to achieve this goal. It increases the maximum share that the state and local investors can have in mining from 20% to 35%, among other things.
This comes as a major new as the majority of gold produced in Mali and Africa is refined outside of the continent, primarily in China, Switzerland, and Canada. On the other hand, there are gold refineries in a few of the continent’s nations, including South Africa, Zimbabwe, and Ghana and the Democratic Republic of the Congo.