BAMAKO, Jan 27 – Mali has approved a 51% state stake in a new industrial explosives venture with China’s Auxin Chemical Technology, tightening government control over a key mining input used in gold, lithium and quarrying operations.
The company, FARATCHI-CO SA, will manufacture civil use explosives locally. The government said majority ownership will strengthen oversight of explosives management, support the development of a local industry, and improve security controls around sensitive materials.
Auxin will hold the remaining 49% and will provide financing and technical expertise for the project. The plant is expected to be built within 12 months, although the government did not disclose the cost.
The decision comes as Mali increases state involvement across the mining value chain. In 2023, the country revised its mining code, raising the government’s expected participation in projects and tightening local content rules as authorities seek a larger share of sector income.
Mali remains one of Africa’s top gold producers and hosts about 30 industrial gold operations, including 15 large mines, alongside two major lithium mines and several quarrying sites, according to the Mines Ministry. However, regulatory changes and persistent insecurity have weighed on output, contributing to a 23% fall in gold production last year, the ministry said.
More broadly, Mali, Burkina Faso and Niger have deepened ties with China and Russia following recent military coups. As a result, Western investors have watched the Sahel’s shift closely as governments pursue new mining, refining and security related deals while expanding state control in strategic sectors.
