Mali and Russia have signed an agreement on November 22nd, 2023, to construct a state-of-the-art gold refinery in the Malian capital of Bamako. The project promises to be the largest of its kind in West Africa, with a capacity to process a staggering 200 tonnes of gold annually.

This ambitious undertaking carries significant implications for the resource-rich West African nation. Mali currently ranks among Africa’s leading gold producers, with the precious metal contributing roughly one-quarter of its fiscal resources.

The deal also marks a deepening relationship between Mali and Russia, a trend gaining momentum since the 2021 military coup and subsequent withdrawal of French forces from Operation Barkhane. This shift in foreign relations reflects a changing geopolitical landscape with evolving partnerships in the region.

With neighboring Burkina Faso also working on its own gold refinery, the West African region is seeing a shift in the gold processing landscape. Both countries, historically reliant on exporting unrefined gold, stand to reap significant additional revenue by capturing the value added from domestic refining.

Photo by Kremlin