In a dramatic escalation of a long-standing conflict, Malian military helicopters descended unannounced on Barrick Gold Corporation’s Loulo-Gounkoto mining complex on Thursday, seizing over one metric ton of gold valued at approximately $117.2 million. This bold move marks the latest chapter in a heated dispute between Mali’s military-led government and the Canadian mining giant, intensifying tensions over resource control in the West African nation.
A High-Stakes Confrontation
The seizure involved more than 2,204 pounds of gold, extracted from the Loulo-Gounkoto complex, one of Africa’s largest gold mining operations. Barrick, a global leader in gold production, reported that the operation was carried out without prior notice, with the bullion potentially intended for sale by Mali’s provisional administration. However, the ultimate fate of the gold remains unclear as the situation continues to unfold.
This incident follows a previous seizure in January 2025, when Malian authorities confiscated three metric tons of gold from the same site, prompting Barrick to suspend operations. The company has yet to receive clarification on the status of the earlier seized bullion, adding to the uncertainty surrounding its operations in Mali.
Roots of the Dispute
The conflict traces back to 2023, when Mali’s military government, facing financial strain, introduced a revised mining code. The new regulations demand higher royalties and increased state ownership in mining ventures, alongside retroactive tax claims. Barrick, which operates the Loulo-Gounkoto complex—a key contributor to Mali’s economy, generating $1 billion annually—has resisted these changes, citing violations of existing agreements.
In contrast, other major gold miners in Mali, such as B2Gold Corp. and Allied Gold Corp., have reached settlements with the government, agreeing to higher royalties and state payments. Barrick, however, has opted for legal recourse, with international arbitration proceedings underway at the International Centre for Settlement of Investment Disputes (ICSID). CEO Mark Bristow has condemned the Malian government’s actions as “unlawful” and vowed to pursue all legal measures to protect the company’s interests.
Provisional Administration and Operational Challenges
In June 2025, a Bamako court placed the Loulo-Gounkoto complex under temporary state management, appointing former health minister Soumana Makadji as administrator. The Malian government recently announced plans to sell the seized gold to fund the mine’s restart after a nearly six-month shutdown. However, Barrick has called these efforts “illegitimate,” warning that a state-led takeover could jeopardize the mine’s long-term viability.
The Loulo-Gounkoto complex, which accounted for 15% of Barrick’s global gold output in 2024, producing 578,000 ounces, is a critical asset for both the company and Mali’s economy. The ongoing standoff, coupled with the government’s recent political maneuvers—including a law granting junta leader Colonel Assimi Goïta an indefinite mandate—has raised concerns about investor confidence in Mali’s mining sector.
Broader Implications for West Africa’s Mining Industry
Mali’s actions reflect a growing trend of resource nationalism across the Sahel, where military governments in countries like Burkina Faso and Niger are asserting greater control over natural resources. These developments have sparked alarm among foreign investors, with fears that Mali’s aggressive stance could inspire similar actions in neighboring nations.
As Barrick prepares for arbitration hearings scheduled before the end of July, the outcome of this dispute could set a precedent for state intervention in West Africa’s mining industry. For now, the seizure of over $117 million in gold underscores the deepening rift between Mali and one of its largest foreign investors, with significant implications for the future of mining in the region.
0 Comments
Leave Your Comment