Chinese companies exploit Sahel resources as Western countries lose ground

Mali, under the leadership of General Assimi Goita, has turned its focus towards the mining sector, particularly lithium, in the face of financial instability. On December 15, 2024, Goita inaugurated a new production facility for lithium located in Goulamina, about 150 kilometers south of Bamako. This inauguration is significant as lithium is a critical component in the production of electric batteries, and the global demand for this mineral is on the rise. The production facility is backed by Ganfeng Lithium, a Chinese company listed on both the Shenzhen and Hong Kong stock exchanges. Under Goita’s regime, which has come to power following a coup in 2020, there has been a complete overhaul of the mining sector. The military government has introduced a new mining code that gives the state substantial ownership stakes in all mining ventures, with up to 30% of profits designated for the Malian state. There are also significant tax increases that impact foreign companies operating in the country, aimed at ensuring that profits from Mali’s rich mineral resources benefit the nation’s economy, which is in dire need of funds. As Western nations diminish their influence in the Sahel region, Chinese companies are seizing this opportunity to deepen their involvement in the mining sector. The military juntas in Mali, Burkina Faso, and Niger are laying the groundwork for increased collaboration with these Chinese firms. This trend demonstrates how shifts in political power can create new avenues for foreign investment, particularly in critical resource extraction sectors. The rationale behind the military government's focus on mining, particularly lithium, lies in the urgent need for financial resources to sustain its rule. Despite international scrutiny and potential sanctions, the junta appears unyielding and determined to restructure the industry to secure its economic interests. This strategic move aligns with global energy trends, where the demand for sustainable energy solutions is prompting increased mining activity for essential minerals like lithium and uranium.