Malian government has begun enforcing a provisional order to seize gold stock at Barrick Gold’s Loulo-Gounkoto mine, escalating a standoff over mining revenues. The Canadian mining giant warned in a note to its Malian staff that it may be forced to suspend operations if the issue remains unresolved.
According to Reuters, this latest move signals that Mali’s military-led authorities are unwilling to back down as they push for a greater share of profits from foreign mining companies.
Mali moves to enforce gold seizure
Barrick confirmed in a staff memo that the Malian government began enforcing the gold stock seizure on January 11. Two Barrick employees and a consultant working for mining companies verified the authenticity of the letter.
While Barrick has not disclosed the exact volume of gold at risk, an internal company estimate suggests the Loulo-Gounkoto stockpile is around 4 metric tons—valued at nearly $380 million based on Monday’s spot gold prices.
Barrick warns of potential mine suspension
Barrick, the world’s second-largest gold miner by volume, previously warned on January 6 that it might have to temporarily halt operations at Loulo-Gounkoto if the restrictions on its gold shipments were not lifted within a week.
The threat remains in place. In the latest memo, Barrick told staff that ‘if the situation is not resolved quickly,’ it may be forced to suspend operations at the site.
Malian authorities have yet to publicly comment on the matter, Reuters reports.
Gold’s critical role in Mali’s economy
Gold is Mali’s largest foreign currency earner, accounting for over 80 percent of total exports in 2023. The Loulo-Gounkoto mine alone contributes approximately 14 percent of Barrick’s estimated gold output for 2025.
This dispute comes amid broader tensions between Western mining companies and military governments across West Africa. Mali, along with Burkina Faso and Niger, has been renegotiating mining contracts to secure a larger share of revenues. These nations have shifted their geopolitical alliances in recent years, moving away from traditional Western partners like France and the United States and strengthening ties with Russia and other players.
Arrest warrant for Barrick CEO and detained staff
In a further escalation, Malian authorities have reportedly issued an arrest warrant for Barrick’s Chief Executive, Mark Bristow, and detained some company staff.
The situation remains fluid, with industry insiders warning that similar disputes could arise across the region as governments seek greater control over their resource wealth.
Credit: Reuters
