Mali government seizes gold, Barrick operations suspended
The Mali government has seized gold from Canadian mining company Barrick Gold at the Loulo-Gounkoto complex, following disputes over revenue shares on January 13th, Reuters reports.
The government ordered this seizure last week, with the gold valuing around $245 million.
Sources stated that authorities will transport this gold to the state-owned Banque Malienne de Solidarite in the capital, Bamako.
The International Centre for Settlement of Investment Disputes (ICSID) registered Barrick’s request for arbitration proceedings against Mali on January 10th, according to public documents.
Malian employees of the mining giant were also warned last month of a significant deterioration of conditions at Loulo-Gounkoto, with unfair staff detentions and shipments of gold bullion blocked.
Mali has previously demanded about $500 million in unpaid taxes from Barrick, but the mining company continues to deny any wrongdoing.
This is the latest news in a dispute between the Malian government and Barrick CEO Mark Bristow dating back to 2023, when the government accused Barrick of violating mining rules.
In December, Mali issued an arrest warrant for Bristow for charges of money laundering, without giving evidence, and ordered the seizure of Barrick’s gold reserves.
Barrick made an earlier payment of $82 million to the Malian government in October 2024 as part of the ongoing negotiations and asserted its commitment to resolve the conflict ‘amicably’.
Jefferies analysts have estimated that suspending production at the mine could cut Barrick’s earnings before interest, tax, and amortisation by 11% in 2025.
The company currently owns 80% of the Loulo-Gounkoto mining complex, with the Mali government owning the remaining 20%.
Mali is but one of the West African countries seeking to negotiate a greater share of mining revenue from foreign mining companies, at a time when gold prices have hit record highs. Other governments include Burkina Faso and Niger.
Reuters, The Africa Report
