Mali Takes Control of Explosives Supply Chain With China Partner

AFRICAN BUSINESS AND ECONOMYJanuary 26, 2026 at 10:15 PM UTC

TLDR

Mali approves 51% stake in explosives firm with China's Auxin, enhancing state control over mining supply chain.
FARATCHI-CO SA to produce civil-use explosives for gold and lithium operations, boosting local production and reducing imports.
State stake aligns with Mali's 2023 mining code, reflecting a trend of African countries strengthening ties with China and Russia in strategic industries.

Mali has approved a move to take a 51% controlling stake in a new industrial explosives company, tightening state control over a supply chain central to mining and security.

The decision, cleared by the Council of Ministers, gives the government majority ownership in FARATCHI-CO SA, a joint venture with China’s Auxin Chemical Technology. The company will produce civil-use explosives for gold, lithium, and quarrying operations, reducing reliance on imports.

Auxin will hold the remaining 49% and provide financing and technical expertise to build the plant within 12 months. The firm already supplies explosives to six African countries and is backed by China’s NORINCO Group, which operates across industrial and defense sectors.

Officials said the state stake will strengthen oversight, secure sensitive materials, and improve supply reliability amid regional insecurity. Explosives are critical inputs for Mali’s extractive industry, which anchors export revenues and fiscal receipts.

The move aligns with Mali’s 2023 mining code, which raised mandatory state equity and tightened local-content rules. It also reflects a broader pivot by Mali, Burkina Faso, and Niger toward China and Russia as governments expand control over strategic industries.

Mali hosts about 30 industrial gold operations and two lithium projects, though gold output fell 23% last year due to regulatory changes and security pressures.

Key Takeaways

Mali’s decision shows how Sahel governments are reshaping resource supply chains. By securing a majority stake in explosives production, the state gains leverage over a critical bottleneck that affects mine output, project timelines, and security risks. Local production reduces exposure to import delays and cross-border disruptions, a recurring problem for landlocked countries facing instability. It also gives authorities tighter control over materials with dual-use risks. For China, the partnership extends an industrial footprint beyond extraction into upstream inputs, deepening long-term ties through technology, training, and maintenance. Auxin’s role brings technical capacity while anchoring operations in state-backed structures. The strategy carries trade-offs. Greater state involvement may reassure governments on security and value capture but could raise concerns for some investors about predictability and governance. Output declines last year underline the need for stable rules alongside tighter control. If the plant comes online as planned, Mali will test whether combining state ownership with Chinese expertise can stabilize production and support mining growth amid shifting geopolitics in the Sahel.

Mali