Mali takes 51% stake in China-backed local explosives venture
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Mali’s Council of Ministers said the state has acquired a 51% interest in a new industrial-explosives venture with Auxin Chemical Technology, extending China’s industrial footprint in the Sahel and increasing state control over critical mining inputs.
The move comes as Mali, Burkina Faso and Niger - all led by military authorities after recent coups deepen ties with China and Russia, a shift that has unsettled some Western investors as the governments pursue new deals in areas including gold refining and security.
Mali’s 2023 mining code increased state equity participation in mining projects and strengthened local-content rules as part of reforms intended to secure a larger share of sector revenues. Auxin, a subsidiary of China’s NORINCO Group, supplies industrial explosives to six African countries, according to its project listings.
The Malian subsidiary, FARATCHI-CO SA — first announced in 2024 — its expected to manufacture civil-use explosives for Mali’s gold, lithium and quarrying operations, according to a statement read on state television. The government said majority ownership is intended to strengthen management of civil-use explosives, promote local industry, enhance oversight and ensure security.
Auxin will hold the remaining 49% stake and will provide financing and technical expertise, with the plant expected to be built within 12 months, though Mali did not disclose the project cost. Mali’s mines ministry says the country hosts about 30 industrial gold operations, including 15 large mines, as well as two major lithium mines and numerous quarry sites.
The sector has faced headwinds from reforms and insecurity, with challenges contributing to a 23% drop in industrial gold output last year, Reuters reported separately this month.
