Mali Takes Majority Stake in Civilian Explosives Company

The Malian government has completed the acquisition of a controlling interest in a company specializing in the manufacture of explosives for civilian applications, marking a new phase in the reforms reshaping the country’s mining sector.

Following a meeting of the Council of Ministers at the Koulouba Palace, authorities approved legislation allowing the State to hold a 51 percent stake in the Central Mali Industrial Company, known as FARATCHI-CO-SA.

The firm was established through a partnership with the Chinese company Auxin, formalized under a shareholders’ agreement signed in November 2024.

Officials say the move is intended to improve oversight of civilian explosive materials, promote domestic industrial development, and reinforce safety and monitoring systems governing their use; particularly within mining operations.

Explosives classified for civilian purposes are primarily employed in large-scale gold mining, quarrying activities, and certain infrastructure projects. Despite being one of Africa’s top gold producers, Mali has long depended on imported explosives to support these industries.

The decision comes against the backdrop of increasingly strict regulations introduced since 2022. As part of efforts to curb terrorism and prevent the misuse of explosive materials, the government has strengthened controls on hazardous substances. These measures include inter-ministerial directives on prior authorization, traceability, secure storage, and regulated transportation of civilian explosives.

While the reinforced framework aims to reduce the risk of diversion for illegal purposes, it has also imposed tighter compliance requirements on companies operating in the sector. Firms are now subject to expanded reporting obligations, detailed inventory tracking, and closer collaboration with security agencies.

Trade statistics indicate that Mali imported an estimated $5.2 million worth of explosives and pyrotechnic products during the second quarter of 2023, largely for approved industrial uses, at a time when regulatory oversight was being steadily intensified.

The establishment of a domestic production facility is expected to ease supply constraints, though authorities have yet to disclose details regarding production capacity, output volumes, or timelines for full-scale operations.

This initiative aligns with wider reforms in Mali’s extractive industries. In 2023, the country adopted a new Mining Code alongside a local content law designed to increase state participation, boost national economic returns, and strengthen value chains linked to natural resources.

By securing a majority stake in FARATCHI-CO-SA, the government aims to deepen the integration of mining activities into the local economy while enhancing security around materials considered strategically sensitive.