Mali’s military government has seized three tons of gold from Canadian mining giant Barrick Gold Corp. (TSX: ABX) in a move escalating an ongoing revenue dispute. The seizure, valued at approximately $180 million, marks the latest development in a series of tensions between the West African nation and international mining companies operating within its borders.
The gold was reportedly taken from Barrick’s Loulo-Gounkoto mining complex near Kayes, a region in western Mali known for its rich mineral deposits. According to a senior Barrick manager, the stockpile was transported by plane and truck to Bamako, Mali’s capital, late Saturday.
An internal letter from Barrick CEO Mark Bristow to Mali’s Mining Minister confirmed the seizure, stating the company was awaiting official acknowledgment of the transfer by the Malian Solidarity Bank, a government entity. While the Malian authorities have remained silent, the move follows a warning issued earlier by Judge Boubacar Moussa Diarra, who ordered the confiscation of Barrick’s gold over alleged unpaid revenues.
Following the development, Barrick has temporarily suspended operations at its Loulo-Gounkoto complex. Loulo-Gounkoto is Mali’s largest gold mine and one of Barrick’s most important assets globally, second only to its flagship Carlin complex in Nevada. In 2023, Loulo-Gounkoto accounted for more than a third of Mali’s formal gold exports, contributing 278 billion CFA francs ($433 million) to the nation’s struggling economy, according to the Extractive Industries Transparency Initiative.
“Barrick has regrettably initiated the temporary suspension of operations while it continues to work towards a resolution,” the company stated. This follows a warning issued eight days earlier, in which Barrick cautioned it might be forced to cease operations if disruptions and export limitations persisted.
Mali vs. Barrick
The seizure is part of a broader legal battle over tax payments and revenue-sharing arrangements. Mali’s government accuses Barrick of underpaying its dues and has demanded substantial financial compensation. In December 2024, an arrest warrant was issued for Bristow on charges of money laundering—a claim Barrick vehemently denies. As tensions mount, the company has offered to pay $370 million to settle the dispute.
“The inability to ship gold not only affects operations but has broader implications for the local economy, the 8,000 employees, and the many local service providers,” Bristow said in a statement earlier this week, warning that unresolved tensions may force Barrick to halt operations at Loulo-Gounkoto.
Mali, one of Africa’s leading gold producers, has increasingly asserted control over its natural resources following a 2020 military coup. The current regime has demanded higher tax payments from international mining companies to shore up its revenues amid a struggling economy and ongoing conflict with jihadist insurgents. Mining accounts for 10% of Mali’s GDP, making it a critical economic pillar.
This dispute mirrors another high-profile case in November when Australian company Resolute Mining paid $80 million to Malian authorities following the arrest of its CEO and two employees. Such actions have raised concerns among investors about the viability of long-term operations in the country.
Aftermath
Barrick Gold, which produced nearly 700,000 ounces of gold at Loulo-Gounkoto in 2023, has been unable to ship its stockpiles since December due to government-imposed export restrictions. The suspension at one of its flagship mines is a blow to its bottom line and reputation as a reliable operator in politically unstable regions. The company’s investments in Mali over nearly three decades—totaling more than $10 billion—now hang in the balance.
The suspension of gold exports is creating widespread economic ripples. The Loulo-Gounkoto mine directly employs thousands of workers and supports a network of local businesses reliant on mining activities. A shutdown of operations could exacerbate unemployment and deepen economic challenges in the region.
In response to the escalating conflict, Barrick has filed for arbitration with the International Centre for the Settlement of Investment Disputes. The company argues that Mali’s actions violate existing agreements, undermining its ability to conduct business effectively.
“This level of uncertainty is deeply regrettable and counterproductive for both parties,” Bristow emphasized, advocating for swift resolution to safeguard Mali’s economic stability and ensure the continuity of Barrick’s operations.
Mali’s actions against Barrick and other foreign mining firms reflect a broader trend of resource nationalism across Africa, where governments are seeking greater control over natural resources. While this strategy aims to maximize local benefits, critics warn it may deter foreign investment, ultimately stalling development in resource-dependent economies.
For now, the impasse between Barrick and Mali remains unresolved, with high stakes for both sides. Barrick faces the risk of a complete operational halt, while Mali’s economic stability and international reputation hang in the balance.
Information for this story was found via The Independent, Investing.com, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
