What's Happening?
Mali has acquired a 51% stake in a new industrial-explosives venture with China's Auxin Chemical Technology, as announced by the country's Council of Ministers. This move is part of Mali's strategy to
increase state control over critical mining inputs and expand its industrial capabilities. The venture, named FARATCHI-CO SA, will produce civil-use explosives for Mali's mining sector, including gold, lithium, and quarrying operations. Auxin Chemical Technology, a subsidiary of China's NORINCO Group, will hold the remaining 49% stake and provide financing and technical expertise for the plant's construction, expected to be completed within 12 months.
Why It's Important?
Mali's decision to take a majority stake in the explosives venture reflects a broader trend of African nations seeking greater control over their natural resources and industrial sectors. This move is significant as it aligns with Mali's recent mining code reforms, which aim to increase state equity in mining projects and enhance local content requirements. The partnership with China also highlights the shifting geopolitical landscape in the Sahel region, where countries are increasingly turning to China and Russia for economic and security partnerships. The development of a local explosives industry could enhance Mali's mining sector's efficiency and security, potentially attracting further investment.
