Mali has acquired a 51% stake in a new industrial‑explosives venture with China’s Auxin Chemical Technology, the country’s Council of Ministers announced, increasing state control over critical mining inputs and expanding Beijing’s industrial presence in the Sahel region, Reuters reported.
Mali, along with Burkina Faso and Niger, all countries that have experienced recent military coups, are turning toward China and Russia, raising concerns among Western investors as their governments pursue new deals in gold refining, security, and uranium as part of a wider Sahel realignment.
Mali’s 2023 mining code increased state equity in mining projects and strengthened local‑content rules, part of reforms aimed at generating more revenue from the sector.
Auxin Chemical Technology, a subsidiary of China’s NORINCO Group, already supplies industrial explosives to six African countries with growing mining activity, according to project listings.
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According to Reuters, the Malian subsidiary, FARATCHI‑CO SA, first announced in 2024, will manufacture civil‑use explosives for gold, lithium, and quarrying operations.
The government said that majority state ownership is intended to “strengthen the management of civil‑use explosives, promote the development of a local industry, enhance oversight, and ensure security.”
Auxin will retain a 49% stake, providing financing and technical expertise for the plant, which is expected to be completed within 12 months. The government did not disclose the cost of the facility.
Mali, one of Africa’s largest gold producers, hosts roughly 30 industrial gold operations, including 15 major mines, alongside two significant lithium mines and numerous quarrying sites, according to the Mines Ministry.
A combination of government reforms and security challenges contributed to a 23% decline in gold output last year.
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Image Credit: Afro impact
