Mali's government will establish a state-controlled gold refinery with Russia's Yadran to boost bullion revenue as West African nations aim for greater resource returns amid rising commodity prices, the country's finance minister said.

The new company, SOROMA-SA, will be 62% owned by the Malian state, with the remainder held by Yadran, Economy and Finance Minister Alousseni Sanou said.

The refinery, set to be built on a five-hectare site near Bamako's airport, will process 200 metric tons annually, almost quadruple Mali's current output of approximately 50 tons, Sanou said.

Mali's National Transition Council approved the shareholding on Thursday, Sanou said, adding the company would assist miners to comply with the revised code.

Mali, Africa's second-largest gold producer, has adopted a revised mining code boosting state stakes in mining firms, raising gold royalties, and requiring domestic gold processing, following similar policies in Burkina Faso, Niger and Guinea that rattled western investors as they pivot to Russia and China.

Mali’s two gold refineries lack certifications, such as by the London Bullion Market Association (LBMA), forcing miners to process gold abroad, according to the Mines Ministry. A senior Mines Ministry official, who requested anonymity, said Yadran would help secure certification, a key obstacle that has prevented the country's existing refineries from accessing global markets.

Mali's military leader Assimi Goita will commission the refinery's construction later in June, according to mines ministry spokesperson.