Mali expects that its alliance with Russia would help stop the export of raw gold

The finance minister of Mali said that the country will work with Russia’s Yadran to build a state-controlled gold factory that will bring in more bullion. This is part of a trend among West African countries to get higher returns on their resources as commodity prices rise.

The Malian government will own 62% of the new company, SOROMA-SA. Yadran will own the rest. The Minister of Economy and Finance, Alousseni Sanou, said.

The refinery will be built on a five-hectare plot of land near Bamako’s airport. It will process 200 metric tons of oil every year, which is almost four times Mali’s current output of 50 tons, Sanou said.

Sanou said that Mali’s National Transition Council approved the stock on Thursday and that the company would help miners follow the new rules.

Mali, which is Africa’s second-largest gold producer, has changed its mining code to increase the government’s share in mining companies, raise gold royalties, and require gold to be processed in Mali. This follows similar moves by Burkina Faso, Niger, and Guinea, which scared off western investors who are now turning their attention to Russia and China.

The Mines Ministry says that Mali’s two gold refineries don’t have any licenses, like those from the London Bullion Market Association (LBMA). This means that miners have to send their gold to be processed in other countries. A top Mines Ministry official who asked to remain anonymous said that Yadran would help get certification, which is one of the main problems that has kept the country’s refineries from selling their products on global markets.

A spokesperson for the mines ministry said that Assimi Goita, Mali’s military boss, will officially start building the refinery later in June.