Mali Takes Majority Stake in New Explosives Manufacturing Company to Boost Mining and Security Oversight

Mali has approved a plan to take a 51 percent stake in a new explosives manufacturing company formed with a Chinese partner, aiming to reduce imports, secure supplies for mining and construction, and strengthen state oversight amid tighter regulations linked to security concerns.

The Malian government has announced plans to take majority control of a newly established company focused on the domestic production of explosives for civilian use, marking a significant shift in the country’s industrial and regulatory strategy. The decision was approved during a recent cabinet meeting held at the Koulouba Palace, where authorities endorsed the state acquiring a 51 percent stake in the company known as “Société Industrielle du Centre du Mali FARATCHI-CO-SA.”
The company has been created through a partnership between the Malian state and the Chinese firm Auxin, under the terms of a shareholder agreement signed in November 2024. By holding a majority share, the government aims to exert greater oversight and control over the production and distribution of explosives, which are considered highly sensitive materials.
The initiative is intended to reduce Mali’s reliance on imported explosives and ensure a more secure and consistent supply for key sectors such as mining, quarrying and large-scale civil engineering projects. Officials say local production will also help strengthen regulatory supervision and improve traceability, reducing the risks associated with misuse or diversion of explosive materials.
Since 2022, Mali has significantly tightened its regulations governing explosives as part of broader efforts to combat terrorism and curb the proliferation of improvised explosive devices. Under the revised framework, companies operating in the sector are now subject to stricter requirements, including prior authorisation, enhanced traceability measures, and more rigorous controls over storage, transportation and stock monitoring.
Trade statistics highlight the scale of Mali’s dependence on imports, with the country bringing in explosives and pyrotechnic products worth approximately 5.2 million dollars in the second quarter of 2023, largely for authorised industrial purposes. Authorities view the new production facility as a way to address this dependency while reinforcing national security concerns.
Although the government has not yet disclosed details regarding the plant’s expected production capacity or the timeline for when operations will begin, the move aligns with Mali’s broader mining sector reforms. These include the introduction of a new mining code aimed at increasing state participation, maximising local economic benefits and strengthening national control over strategic resources.