CANADIAN mining giant Barrick Gold is on the brink of suspending its mining operations in Mali after the government seized three metric tons of gold from its Loulo-Gounkoto complex, Reuters reported. The gold, valued at approximately $245 million, was transported by helicopter over the weekend, intensifying a prolonged dispute between Barrick and Malian authorities.
Government confiscates gold amid $5.5bn tax dispute
According to Reuters, sources confirmed that the seized gold was flown to Bamako and placed in the state-owned Banque Malienne de Solidarité (BMS). The move follows a confiscation order issued by a Malian judge on January 2, which cited an alleged $5.5bn debt Barrick owes to the government. This figure is significantly higher than previous estimates.
Barrick has been entangled in a legal battle with Mali’s government over changes to mining regulations and tax claims since 2023. The company has denied any wrongdoing, maintaining that it has met its financial obligations, including an $85 million payment to Malian authorities in October.
Mining operations at risk as legal dispute escalates
In response to the seizure, Barrick warned in a letter to Malian authorities that the removal of the gold voids its insurance coverage, potentially forcing it to halt mining activities at Loulo and Gounkoto. The company is now awaiting confirmation that the gold has reached BMS and proof of its insurance status.
This latest move follows a series of clashes between Barrick and the Malian government. Malian authorities have previously detained senior Barrick executives, issued an arrest warrant for CEO Mark Bristow, and blocked bullion shipments.
On Friday, the International Centre for Settlement of Investment Disputes registered Barrick’s request for arbitration against Mali, further escalating tensions.
Impact on Barrick Gold and Mali’s mining sector
Barrick’s shares dropped 1.9 percent on the Toronto Stock Exchange following the news. Analysts at Jefferies estimate that suspending production at Loulo-Gounkoto could reduce Barrick’s 2025 earnings by 11 percent.
Mali’s government, led by a military administration, is pursuing tougher mining revenue policies, mirroring similar efforts in Burkina Faso and Niger. With gold prices at record highs, these governments are seeking a greater share of profits from foreign mining firms.
Neither Barrick nor Malian officials responded to requests for comment. However, Barrick has warned its Malian employees that the enforcement of the confiscation order may lead to a prolonged halt in operations.
With both sides locked in a deepening dispute, the future of Mali’s largest gold mining operation remains uncertain.
