Mali Seizes Gold Stock at Barrick’s Loulo-Gounkoto Amid Contract Dispute
Mali’s government has initiated the enforcement of a provisional order to seize gold stock at Barrick Gold’s Loulo-Gounkoto mining complex, according to a company memo to Malian staff. Barrick warned that this escalating dispute over mining rules could lead to a temporary suspension of operations at the site.
The move highlights Mali’s military-led government’s push for greater control and revenue share from foreign mining companies. The conflict stems from new mining regulations introduced as part of broader efforts to renegotiate agreements with Western miners.
“A provisional order to seize our existing gold stock was issued last week, and the Malian government began enforcement on January 11,” Barrick stated in the memo.
Two Barrick employees and a mining consultant confirmed the letter’s authenticity to Reuters, with employees noting it was shared with staff on Sunday.
While Barrick has not disclosed the volume of gold impacted, an internal estimate places Loulo-Gounkoto’s gold stock at around 4 metric tons—valued at approximately $380 million based on recent spot prices.
When approached for comment, Barrick referred to its January 6 statement, in which the company warned it might suspend operations if restrictions on gold shipments were not lifted within a week.
In the latest communication, Barrick reiterated this threat, stating that operations could halt “if the situation is not resolved quickly.”
Loulo-Gounkoto represents about 14% of Barrick’s projected gold output for 2025. For Mali, gold remains its top foreign currency earner, contributing over 80% of export revenue in 2023.
The dispute reflects broader tensions between Western mining companies and military governments in West Africa. In Mali, Burkina Faso, and Niger, recent coups have prompted governments to renegotiate mining contracts, seeking a greater share of revenues.
These shifts have also seen a pivot away from traditional allies like France and the U.S., with growing ties to Russia and other nations.
Mali has reportedly issued an arrest warrant for Barrick CEO Mark Bristow and detained several company employees. The Malian government has not yet provided a public statement on the matter.
This high-stakes standoff signals an uncertain future for foreign miners operating in the region, as local governments continue to assert greater control over their natural resources.
