Faith Nyasuguta
Mali’s military government has announced the signing of an agreement with Russia to build a gold refinery in the national capital of Bamako.
So far, the two nations have signed several agreements and continue bilateral relations, including the construction of a 200-tonne annual gold refinery, the largest in West Africa.
According to the Minister of Economy and Finance, Alousseni Sanou, the memorandum is valid for four years.
The project should make it possible “not only to control all gold production, but also to correctly apply all taxes and duties,” he told national television station ORTM on Tuesday night.
In August this year, Mali embraced a new mining code allowing the state to take up to 30% stakes in new mineral projects and collect more revenues from the vital industry.
INCREASED RUSSIA-AFRICA TIES
The nation is one of Africa’s largest gold producers, in 2022 alone, it produced 72.2 tonnes (79.6 tons) of gold, representing 66.2 tonnes of industrial production and an increase of 8.4%, according to the Malian statistical agency.
Currently, gold accounts for around one-quarter of Mali’s fiscal resources, making it one of the leading gold-producing countries on the continent. In recent days, most of Mali’s gold has been exported to South Africa, Switzerland and Australia.
In the past few years, relations between Mali and Russia have strengthened, notably following a coup in 2021, and the withdrawal of French forces from Operation Barkhane in 2022.
Russia has been boosting its ties with Africa in recent years in economic and security sectors as it attempts to increase its influence in the continent.
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