The Malian government has announced that it now holds a 51 percent controlling stake in a newly established company dedicated to producing civil‑use explosives, marking a strategic shift toward local industrial capacity and tighter oversight of sensitive materials.
The move was approved by Mali’s cabinet at a meeting at the Koulouba Palace, where authorities formalised majority state ownership of “Société Industrielle du Centre du Mali FARATCHI‑CO‑SA,” a joint venture created with Chinese partner Auxin Chemical Technology under a shareholder agreement signed in November 2024.
The initiative aims to reduce Mali’s dependence on imported explosives, which has historically cost the country millions of dollars for use in the mining sector, quarrying operations and large civil engineering projects. Trade figures show that Mali imported about US$5.2 million worth of explosives and related products in just one quarter of 2023, highlighting the scale of external reliance prior to the local venture.
By taking majority control, the government seeks to secure supply lines for the extractive industry, which is central to Mali’s economy as one of Africa’s top gold producers. The local production of explosives is also seen as vital for major mining operations including gold and lithium extraction and for infrastructure development, where reliable access to industrial inputs can help reduce project delays and costs.
The government’s enhanced role in FARATCHI‑CO‑SA aligns with broader reforms introduced under Mali’s 2023 Mining Code and local‑content laws, which increased state participation in strategic industries and required higher local equity in natural resource ventures.
Officials have emphasised that the state’s majority stake will also improve oversight of explosives, reducing risks associated with importation, storage and misuse, a concern that has grown as authorities simultaneously strengthen regulations to combat terrorism and the proliferation of improvised explosive devices.
Auxin, holding the remaining 49 percent stake, is expected to provide technical expertise and financing as construction of the facility moves forward, with production capacities and operational timelines yet to be disclosed.
The government’s move reflects a broader strategy of industrialising key supply chains, enhancing national sovereignty over resource inputs, and reinforcing economic benefits for Mali’s domestic economy. It also illustrates a growing partnership with China in building infrastructure and industrial capacity across the Sahel region.
