Barrick Gold Warns of Looming Crisis as Tensions with Mali Escalate

Canada-headquartered Barrick Gold has issued a stern warning to the government of Mali, stating that the future of its flagship Loulo-Gounkoto gold mine is in jeopardy due to a worsening standoff over taxes and regulatory actions.

In a statement released on Wednesday, the Toronto-based gold miner accused a “small group of individuals” within Mali’s government of blocking a fully negotiated agreement—reached in February with the Ministry of Finance—for political or personal reasons. Despite Barrick already paying $85 million last year as part of ongoing negotiations, the agreement remains unsigned.

“The long-term viability of one of Mali’s most strategic mining assets and a key contributor to the national economy is at risk,” Barrick warned.

The company cited several aggressive actions taken by Malian authorities, including:

• The continued detention of local employees,
• Suspension of gold shipments,
• Closure of Barrick’s Bamako office, and
• Threats to place the Loulo-Gounkoto mine under provisional administration unless it resumes operations and meets tax demands.

Since November, Mali has blocked Barrick’s gold exports while continuing to demand tax payments on revenues that Barrick says it cannot realise due to the export ban.

Despite halted operations, Barrick has continued paying employee wages and supporting contractors. However, the company called the current situation “unsustainable.”

Relations between Barrick and the Malian government have deteriorated since 2023, when the government introduced a new mining code aimed at increasing state participation in mining ventures.

Disputes over the code’s implementation and tax liabilities have led to the suspension of operations at Loulo-Gounkoto since January.

According to Reuters, the closure of Barrick’s Bamako office earlier this week has left workers in the capital unable to access the building, further disrupting the company’s local presence.

Barrick stressed that it remains ready to restart production immediately if the February agreement is signed, unlocking significant tax and royalty flows for Mali’s national budget.

“The consequences of the government’s continued inaction are serious, both economically and from a human perspective,” the company said.

With four local employees still detained without charges, Barrick urged Mali’s leadership to act in the interest of its economy and citizens.

The company also signaled its readiness to pursue international arbitration and legal remedies if the dispute is not resolved soon.

“Barrick urges the government of Mali to act now by concluding the agreement which stands ready to be implemented,” it said.