Mali has taken a controlling 51 percent stake in a new industrial explosives joint venture backed by China, strengthening state oversight of a strategic supply chain serving its mining sector. The decision was approved by Mali’s Council of Ministers and reported by Reuters, citing a government statement read on state television.
The venture, known as FARATCHI-CO SA, will manufacture civil-use explosives for gold, lithium and quarrying operations across the country. China’s Auxin Chemical Technology, a subsidiary of China North Industries Group Corporation (NORINCO), will hold the remaining 49 percent stake and provide financing and technical expertise, according to details reported by Reuters.
“This decision reflects our determination to secure the supply of essential mining inputs while increasing local production capacity,” a Malian government official said, as quoted by Reuters. The official added that the explosives plant is expected to be constructed within 12 months and will reduce dependence on imported materials.
The move aligns with Mali’s revised mining code introduced in 2023, which increased mandatory state participation and local-content requirements across the sector. Reuters reported that the policy shift forms part of broader efforts by the military-led government to assert greater control over natural resource value chains in one of Africa’s leading gold-producing countries.
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