Mali Appoints Temporary Administrator to Restart Operations at Barrick’s Loulo-Gounkoto Mine Amid Dispute
The Malian government has announced that a temporary administrator will resume production at Barrick Gold Corporation’s Loulo-Gounkoto mining complex, following a sharp escalation in tensions between the Canadian mining giant and the West African nation’s military-led government.
The mine, one of Barrick’s most valuable assets, was placed under provisional administration earlier this month.
On June 16, a court in Bamako ruled that the state could assume control of the mine’s management for six months.
Barrick subsequently suspended operations after Malian authorities blocked gold exports and detained senior company staff.
“The situation cannot remain as it is, because we need to protect the workers and the facilities,” said Mines Minister Amadou Keita during a broadcast on state-run ORTM.
The newly appointed administrator, a former health minister, will be tasked with restarting operations, paying workers’ salaries, and ensuring gold production continues to benefit the national economy.
The dispute stems from a broader standoff between Mali’s ruling junta and foreign investors. In 2023, the military regime began demanding large payments for alleged back taxes and imposed a new mining code that increased state royalties and ownership stakes in mining ventures.
While companies such as Allied Gold Corp and B2Gold Corp have reached settlements, Barrick has resisted the new terms.
Keita, in a rare public statement on the matter, said an industry audit revealed several issues, including the widespread practice among mining firms of depositing gold revenues in foreign banks. The government views this as detrimental to the country’s economy.
Barrick, one of the world’s leading gold producers, has responded by initiating international arbitration proceedings.
The company argues that its subsidiaries are protected under binding agreements that predate the new regulations, and that they have the right to maintain offshore accounts for revenue from gold sales.
Despite the legal challenge, Barrick has stated it remains open to reaching a “mutually acceptable solution” with the Malian government.
The conflict highlights the growing strain between Mali’s military government and Western investors.
Since the 2020 coup that ousted the elected president, the junta led by General Assimi Goïta has deepened ties with Russia while distancing itself from traditional allies such as the United States and France.
