The government of Mali has started confiscating gold stockpiles at Barrick Gold’s Loulo-Gounkoto mining site, following a dispute over the country’s revised mining regulations. This action enforces a provisional order issued by the Malian authorities last week.
Barrick Gold confirmed the seizure in a memo to its staff. The military-led government has been pressing for a larger share of mining revenues from foreign operators. According to the memo, the enforcement of the seizure began on January 11, 2025. Barrick warned that it may be forced to suspend its operations at the site if the situation remains unresolved.
The Loulo-Gounkoto site is crucial to Barrick’s global production, contributing around 14 percent of the company’s estimated gold output for 2025. Barrick holds an 80 percent stake in the mine, with the Malian government owning the remaining 20 percent.
Although Barrick has not disclosed the exact amount of gold involved in the dispute, internal estimates suggest approximately 4 metric tons, worth an estimated US$380 million at current gold prices, could be at stake. Sources told Reuters that around 3 metric tons of gold had already been seized by helicopter on January 11, valued at approximately US$245 million.
This dispute comes amid ongoing tensions between Barrick and the Malian government, primarily over claims of unpaid taxes and dividends. Mali asserts that Barrick owes US$512 million, a claim the company has strongly rejected. In a January 6 statement, Barrick warned that continued restrictions on gold shipments could lead to a suspension of its operations. Barrick is currently seeking arbitration through the International Center for the Settlement of Investment Disputes.
The conflict has escalated with several detentions of Barrick executives, including the most recent in November 2024. Reports in early December indicated that an arrest warrant had been issued for Barrick’s CEO, Mark Bristow.
Mali’s Mining Code Overhaul and Rising Tensions
Gold is Mali’s most significant export, accounting for more than 80 percent of the country’s total export revenues in 2023. Since the military coup in 2021, Mali has been led by a military government. In 2023, the country introduced a new mining code, which aims to increase the government’s stake in mining operations from 20 percent to 35 percent.
The revised code also mandates the government to collect 7.5 percent of sales revenue from gold mining when prices exceed US$1,500 per ounce. As part of an ongoing audit of the mining sector, Mali has been pursuing back taxes and dividends from international mining companies, with Finance Minister Alousseni Sanou projecting that the country will collect 750 billion CFA francs (approximately US$1.2 billion) from miners in the first quarter of 2025.
In late 2024, the government successfully collected 500 billion CFA francs from the mining sector. While some companies have reached agreements with Mali, including B2Gold, which settled a financial dispute in September 2024, Barrick’s disagreement remains unresolved. Australia’s Resolute Mining also reached a settlement with the government in November 2024, agreeing to pay US$160 million following the detention of several executives.
As the situation with Barrick continues, the outcome of the ongoing dispute remains uncertain, with both sides entrenched in their positions.
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