Barrick Gold Corp. (TSX:ABX) is grappling with escalating tensions in Mali as the West African nation imposes stricter controls on its lucrative mining sector. The latest restrictions target Barrick’s Loulo-Gounkoto mining complex, one of the most significant gold mining operations in the region, and have banned the export of on-site gold stockpiles.
The Canadian mining giant, which produced nearly 700,000 ounces of gold at the Loulo-Gounkoto complex in 2023, has been unable to ship gold since early December due to a government-imposed export restriction. In a statement released Monday, Barrick’s president and CEO Mark Bristow called the ban “unwarranted” and claimed it contravenes the dispute resolution mechanisms agreed upon with the Malian government.
“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 warned. The CEO added that unless the matter is resolved within the coming week, Barrick will be forced to temporarily suspend operations at the mine—a move he described as “deeply regrettable but unavoidable.”
The current standoff is part of a broader conflict between the Malian government and mining companies operating in the country. Mali’s government is demanding additional tax payments from international mining firms, part of an effort to assert greater control over its key natural resources. The mining sector contributes significantly to Mali’s economy, accounting for approximately 10% of its gross domestic product.
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Over the past 29 years, Barrick Gold said it has invested over $10 billion in Mali, playing a pivotal role in the country’s economic development. In 2024 alone, the company injected more than $1 billion into the local economy, according to its financial disclosures. Barrick has consistently emphasized its commitment to Mali, but the escalating dispute now threatens to derail this partnership.
To address the situation, Barrick has submitted a formal request for arbitration to the International Centre for the Settlement of Investment Disputes. The company argues that Mali’s latest actions violate existing agreements and undermine its ability to conduct business. Bristow has underscored the importance of resolving the dispute quickly, citing the adverse effects on Barrick’s operations and Mali’s economic stability.
The Malian government has yet to release an official response to Barrick’s statements, but sources within the administration suggest the restrictions are part of a broader push to secure higher revenues from foreign-owned mining ventures.
The suspension of gold shipments has not only disrupted Barrick’s operations but has also had ripple effects throughout Mali’s economy. The Loulo-Gounkoto complex employs thousands of workers directly and supports numerous local businesses. A temporary shutdown would likely exacerbate unemployment and strain the region’s economy, which heavily relies on mining-related activities.
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