Mali Takes Control of Civil Explosives Producer, Reducing Dependence on Imports
In a significant move to boost its economy and secure supplies for its mining sector, Mali's government has announced that it is taking majority control of a new company dedicated to producing civil-use explosives within the country. This development comes as part of wider mining reforms aimed at increasing state participation and local economic benefits.Mali Takes Majority Control of Civil Explosives Producer
The Malian government has approved a 51 percent stake in the 'Société Industrielle du Centre du Mali FARATCHI-CO-SA,' created in partnership with the Chinese firm Auxin. This move is expected to reduce Mali's dependence on imports and secure supplies for the mining sector, quarries, and major civil engineering works.
Tightening Oversight of Sensitive Products
Since 2022, Bamako has toughened regulations on explosives amid the fight against terrorism and the spread of improvised explosive devices. Companies now face stricter rules on prior authorisation, traceability, storage, transport, and stock monitoring.
Reducing Dependence on Imports
Trade data show Mali imported about $5.2 million worth of explosives and pyrotechnic products in the second quarter of 2023, mainly for authorised industrial use. The new plant is expected to reduce this dependence and provide a more stable supply chain for the mining sector.
New Mining Reforms
The move fits into wider mining reforms designed to boost state participation and local economic benefits. No official figures have yet been released on the plant's production capacity or when it will come on stream, but this development is seen as a significant step towards reducing Mali's reliance on imports.
Mali's decision to take majority control of its civil explosives producer marks an important milestone in the country's efforts to boost its economy and secure supplies for its mining sector. As part of wider mining reforms, this move is expected to increase state participation and local economic benefits, reducing Mali's dependence on imports and providing a more stable supply chain.
