MALI’S military-led government has seized approximately three metric tons of gold worth $245 million from Barrick Gold’s Loulo-Gounkoto mine, escalating tensions between the mining giant and authorities. The gold is now being held at the state-owned Banque Malienne de Solidarité (BMS), according to sources cited by Reuters.
The dispute mirrors a growing trend across West Africa, where military-led governments in Mali, Niger, and Burkina Faso are demanding greater control over revenues from Western mining companies. Barrick confirmed the seizure on Tuesday and announced the suspension of its operations in response.
Gold seizure and government response
A judicial order dated January 2 initially instructed that the gold be stored at the Banque de Développement du Mali (BDM) in Bamako. However, sources indicate that BDM was unable to securely hold the gold, leading to its transfer to BMS. Malian authorities have yet to comment on the matter or Barrick’s decision to halt operations.
Barrick, which employs around 8,000 people in Mali, has begun furloughing expatriate staff, with local employee furloughs set to follow. Some expatriates are being reassigned to other Barrick operations, while others have been advised not to return to Mali from leave. A skeleton crew will remain on-site to maintain security and essential operations.
Economic and social impact
The suspension presents economic challenges for both sides. Barrick’s Loulo-Gounkoto mine is projected to contribute 14 percent of the company’s 2025 gold production. Meanwhile, mining unions have expressed concerns about potential job losses, urging both parties to consider the social impact.
In a statement last week, a mining union group highlighted the risks, warning that ‘suspending operations would jeopardise the livelihoods of over 8,000 workers and their families.’
Gold remains Mali’s most valuable export, accounting for more than 80 percent of the country’s foreign currency earnings in 2023. The outcome of this dispute could have lasting implications for Mali’s mining sector and its broader economy.
