Barrick says Malian authorities have seized stocks of gold from its sites
Canadian mining corporation Barrick Gold has announced that it will suspend operations in Mali in response to a long-running dispute with the West African country’s military government over alleged unpaid taxes.
The company accuses the Malian authorities of seizing gold stocks from its Loulo-Gounkoto complex, located in the west of the country, and transferring them to a custodial bank, thereby effectively blocking the shipment and sale of the precious metal.
According to sources cited by Reuters on Monday, the government removed around three metric tons of gold worth $245 million from the mining sites and flew them out by helicopter on Saturday.
The world’s second-largest miner has been at odds with Mali since 2023 over a new extraction contract that would give the landlocked state more control over its minerals.
The former French colony is one of Africa’s top gold producers, with large-scale mining operations such as the Loulo and Gounkoto mines, which are 80% owned by Barrick and 20% by the Malian government. However, since taking power in a coup in 2020, the new leadership in Bamako has sought more revenue from the sector to boost state income as the price of the precious metal continues to rise. In 2023, the Sahel state passed a new mining code allowing the government to own up to 30% of any new projects.
In late September, the Canadian firm announced that it had reached a preliminary agreement with the military-led government to resolve concession disputes. It added that the terms of the contract, which will also govern Barrick’s partnership with Bamako, will be made public once finalized.
Since then, tensions have escalated, with Mali detaining senior Barrick executives. It has also issued an arrest warrant for its CEO, Mark Bristow, on charges of money laundering. The company has denied the allegations.
Mali had previously demanded around $500 million in unpaid taxes from Barrick, according to reports. On October 24, the corporation announced that it had paid $85 million to the African country as part of the “ongoing negotiations.”
Earlier this month, Malian senior judge Boubacar Moussa Diarra issued an order for the seizure of three tons of gold from Barrick, according to court documents quoted by multiple outlets. The Sahel state’s economy ministry reportedly said Barrick owes the government $5.5 billion.
Last week, Barrick said it had been unable to ship gold from its mining sites in the African country due to an “interim attachment order,” which it claims is in “contravention of the agreed dispute resolution mechanisms.”
“As a result, Barrick has regrettably initiated the temporary suspension of operations while it continues to work towards a resolution,” the firm said in a follow-up statement on Tuesday.
In December, Barrick filed an arbitration request with the International Center for the Settlement of Investment Disputes to resolve the conflict with Mali over the Loulo-Gounkoto complex.
