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Mali gold refinery: Military ruler Gen Assimi Goïta hails construction as assertion of 'economic sovereignty'

Mali gold refinery: Military ruler Gen Assimi Goïta hails construction as assertion of 'economic sovereignty'

BBC News4 hours ago

Mali's military junta has started building the West African state's first-ever gold refinery in partnership with a Russian conglomerate, the Yadran Group. The project would embody Mali's assertion of its "economic sovereignty", and ensure the nation benefited from its mineral wealth, military leader Gen Assimi Goïta said. He has strengthened military and economic ties with Russia since seizing power in a coup in 2021, while reducing relations with former colonial power France and other Western nations.This reflects a broader trend in the region, with neighbouring Burkina Faso and Niger also pivoting towards Russia after the overthrow of civilian leaders.
Western firms have since been facing a tough time - the latest example being Mali's decision to put a huge gold mine, run by Canadian giant Barrick, into administration, effectively bringing it under state control. On Monday, Gen Goïta - along with Yadran Group head Irek Salikhov - attended a ceremony for the construction of the refinery, which will have a 200-tonne capacity, in Senou, not far from the capital, Bamako.Mali would having a majority stake in the refinery, and Yadran Group a minority share.Mr Salikhov hailed the plant as a "win-win" for both nations, saying the aim was to turn the refinery into "a regional centre for processing gold extracted not only in Mali, but also in neighbouring countries like Burkina Faso".No date has been announced for its completion, but Gen Goita said: "It's a long-awaited dream of the Malian people, and today it's becoming a reality." The plant would enable Mali to "refine all the gold mined on its soil, ending decades of crude export to foreign refineries", he added.Mali is Africa's second-biggest producer of gold, but many of its people remain poor 65 years after independence.
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Mali gold refinery: Military ruler Gen Assimi Goïta hails construction as assertion of 'economic sovereignty'
Mali gold refinery: Military ruler Gen Assimi Goïta hails construction as assertion of 'economic sovereignty'

BBC News

time4 hours ago

  • BBC News

Mali gold refinery: Military ruler Gen Assimi Goïta hails construction as assertion of 'economic sovereignty'

Mali's military junta has started building the West African state's first-ever gold refinery in partnership with a Russian conglomerate, the Yadran Group. The project would embody Mali's assertion of its "economic sovereignty", and ensure the nation benefited from its mineral wealth, military leader Gen Assimi Goïta said. He has strengthened military and economic ties with Russia since seizing power in a coup in 2021, while reducing relations with former colonial power France and other Western reflects a broader trend in the region, with neighbouring Burkina Faso and Niger also pivoting towards Russia after the overthrow of civilian leaders. Western firms have since been facing a tough time - the latest example being Mali's decision to put a huge gold mine, run by Canadian giant Barrick, into administration, effectively bringing it under state control. On Monday, Gen Goïta - along with Yadran Group head Irek Salikhov - attended a ceremony for the construction of the refinery, which will have a 200-tonne capacity, in Senou, not far from the capital, would having a majority stake in the refinery, and Yadran Group a minority Salikhov hailed the plant as a "win-win" for both nations, saying the aim was to turn the refinery into "a regional centre for processing gold extracted not only in Mali, but also in neighbouring countries like Burkina Faso".No date has been announced for its completion, but Gen Goita said: "It's a long-awaited dream of the Malian people, and today it's becoming a reality." The plant would enable Mali to "refine all the gold mined on its soil, ending decades of crude export to foreign refineries", he is Africa's second-biggest producer of gold, but many of its people remain poor 65 years after independence. You may also be interested in: Why Burkina Faso's junta leader has captured hearts and minds around the worldHow a uranium mine became a pawn in the row between Niger and FranceWhy France faces so much anger in West Africa Go to for more news from the African us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica

Mali starts construction of Russia-backed gold refinery
Mali starts construction of Russia-backed gold refinery

Reuters

time7 hours ago

  • Reuters

Mali starts construction of Russia-backed gold refinery

BAMAKO, June 16 (Reuters) - Mali began construction of a new Russia-backed gold refinery on Monday, which the West African country's military leader said would take it closer to asserting control over its natural resources. The 200-ton capacity facility, in which Mali has a controlling stake, will be built in partnership with Russia's Yadran Group and a Swiss investment company. Mali's interim president Colonel Assimi Goita said last year that all mining companies will be required to process their gold domestically under a revised mining code, without providing a deadline. That reflects a broader regional shift extending across the Sahel, where Guinea, Niger and Burkina Faso have also revised mining codes to mandate local processing, adding value to their exports and boosting the economic benefits of their resources. "Since 1980, Mali's gold has been exported for refining and sale to countries such as the United Arab Emirates, South Africa, and Switzerland," Goita said at the groundbreaking ceremony for the new plant in Senou, outside the capital Bamako. "This deprives our country of substantial revenues that could be used for the development of its economy." The government has not provided a deadline for the plant's completion. Once fully operational, it will process all gold produced in Mali into dore bars before it is exported, with a capacity nearly four times Mali's annual gold production. Echoing comments from Goita, Yadran President Irek Salikhov said at the ceremony the refinery will become "a regional center for processing gold extracted not only in Mali, but also in neighboring countries — like Burkina Faso". West Africa is a major gold producer, but lacks a functional and globally certified gold refinery despite attempts to create one including by Ghana, the continent's top gold producer. The refinery is part of Goita's sweeping mining reforms introduced since the military leader seized power in 2021 and severed relations with Western partners. Mali's revised mining code, like those of neighbours Guinea, Niger and Burkina Faso, has rattled investors. A Malian court this month put Canadian miner Barrick's ( opens new tab Loulo-Gounkoto gold complex under temporary state control, escalating an ongoing dispute over Mali's tax claims. Goita said the refinery would enable Mali to better track its gold production and exports. Like many African countries, it loses billions of dollars to gold smuggling due to the absence of certified gold refineries and traceability programmes.

Mali takes control of Canadian-owned Barrick Gold mine over tax dispute
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The Independent

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  • The Independent

Mali takes control of Canadian-owned Barrick Gold mine over tax dispute

A judge in Mali on Monday ordered Barrick Gold's Loulo-Gounkoto gold complex to be placed under provisional administration for six months in an ongoing dispute between the Canadian mining company and the West African nation's military government over unpaid taxes. Zoumana Makadji, an accountant and a former Malian minister of health has been appointed as the company's provisional administrator within 15 days, Judge Issa Aguibou Diallo said in a statement to Barrick's lawyers. Barrick's website said the company is Africa's largest gold producer through its Loulo-Gounkoto complex and Kibali mine located in Congo. Barrick Gold has been in conflict with Mali's military rulers over alleged unpaid taxes and unfair contracts with past governments. The dispute culminated in an arrest warrant in December for Barrick CEO Mark Bristow and the company's offer to pay $370 million to the government. 'While Barrick's subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator,' Barrick said in a statement on its website following the ruling. In December, Barrick submitted a request for arbitration to the International Center for Settlement of Investment Disputes to address disagreements with Mali concerning the Loulo-Gounkoto complex, where the mines are located. Despite this, the government took a series of escalatory measures, including the arrest of Barrick Gold employees, who remain detained, and the suspension of gold exports. Barrick, which has been present in Mali for three decades, emphasized that the arbitration process was still ongoing and reaffirmed its commitment to 'engaging with the government of Mali, in parallel, to identify a constructive, mutually acceptable solution.' The company's statement on Monday added: "The ongoing detention of (our) employees — who remain unjustly imprisoned and used as leverage in this process — is deeply concerning and inconsistent with the trust, transparency and accountability required for a genuine long-term partnership. 'To date, no credible rationale has been presented to justify this detention and the Government's position, and the Government's ever-increasing demands have lacked both factual and legal foundation.' Mali is one of Africa's leading gold producers, but it has struggled for years with jihadi violence and high levels of poverty and hunger. The military seized power in 2020, and the government has placed foreign mining companies under growing pressure as it seeks to shore up revenues. In November, the CEO of Australian company Resolute Mining and two employees were arrested in Bamako. They were released after the company paid $80 million to Malian authorities to resolve a tax dispute and promised to pay a further $80 million in the coming months.

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