Mali-Russia Agreement: Gold Refinery Signals Deepening Ties Amidst Shifting Global Dynamics

Mali’s military government announced a Mali-Russia collaboration, revealing the signing of an agreement to construct a gold refinery in the capital city, Bamako. The memorandum of understanding, described by Minister Alousséni Sanou during a late Tuesday interview on state television, is non-binding and spans four years.

The proposed refinery, with a capacity of 200 tonnes per year, would mark a substantial addition to Mali’s infrastructure, potentially becoming the nation’s largest gold refinery. Sanou, in emphasizing the broader implications of the project, stated, “This will allow us not only to control all gold production but also to be able to correctly apply all taxes and duties.”

This Mali-Russia agreement reflects Russia’s expanding interests in Mali, a major gold producer on the African continent, coinciding with a decline in Western influence within the region. In October, Mali and Russia’s state nuclear energy company, Rosatom, inked a deal focused on mineral exploration and nuclear energy production. Additionally, Sanou disclosed another agreement with a Russian company, outlining plans for the construction of a 200 to 300-megawatt solar power plant scheduled for completion by mid-2025.

Mali’s military, which assumed power following a 2021 coup, took a pivotal step last year by expelling French troops engaged in countering Islamist militants. Instead, they joined forces with the Russian military contractor, Wagner Group, known for its extensive operations across Africa, including lucrative mining contracts. Wagner Group, however, faces allegations of human rights abuses in Mali’s anti-Islamist campaign, particularly against groups affiliated with al Qaeda and the Islamic State.

Against the backdrop of these geopolitical shifts, Mali’s industrial gold production reached 66.2 tonnes in the past year. Major contributors to this output included mining companies such as Barrick Gold (ABX.TO), B2Gold (BTO.TO), Resolute Mining (RSG.AX), Allied Gold (AAUC.TO), and Endeavour Mining.

Mali is not the only military junta to sign an agreement with Russia. Recently, Burkina Faso announced the signing of an agreement with Russia that will see the construction of a nuclear plant to help with electrification.

Mimi Mefo Info