Keypoints:
- Mali court seizes Barrick’s Loulo-Gounkoto gold mine
- Dispute tied to new mining code, taxes and ownership
- Barrick plans appeal, warns of investment risks
A MALIAN court has placed Barrick Mining’s flagship Loulo-Gounkoto gold complex under state control, deepening a months-long dispute over tax obligations and mine ownership between the Canadian firm and the military-led government.
On June 16, the Bamako Commercial Court appointed Soumana Makadji, a former health minister, as provisional administrator of the mine for six months. The ruling signals a major escalation in tensions between Barrick and the government, which has sought greater control over mining revenues as gold prices hover near record highs.
Barrick said it would appeal the ruling, describing the legal proceedings as flawed and unjust. ‘Justice was neither heard, nor served,’ said Issaka Keita, legal counsel for Barrick, in comments to Reuters.
Government clampdown disrupts operations
The court’s decision follows a series of government moves in late 2024 and early 2025, including the blocking of gold exports and the seizure of three metric tonnes of gold stock held by Barrick subsidiaries. The escalating pressure forced the company to suspend operations at the Loulo-Gounkoto site in January, a mine that previously accounted for 14 percent of Barrick’s global output.
Barrick has since removed production from the complex from its 2025 output forecasts and said the actions taken by the Malian authorities were unjustified and harmful to investor confidence.
Mali’s mines ministry declined to comment on the latest ruling.
High stakes as gold prices soar
Mali’s government, which is a shareholder in the Loulo-Gounkoto complex, had requested court intervention in May, arguing for state oversight amid surging global gold prices. If the mine is brought back online, analysts estimate it could generate over $1bn in revenue within a year.
However, the seizure has unnerved international investors. Barrick’s shares fell 0.7 percent in early Monday trading in Toronto, underperforming its global peers. Analysts warn the standoff could deter new foreign investment in Mali’s critical mining sector, which is already grappling with insecurity and political instability.
Dispute rooted in new mining code
The dispute stems from the 2023 implementation of Mali’s revised mining code, which raises taxes and expands the government’s ownership stake in mineral assets. Barrick and the government have been in negotiations over a new operating contract that aligns with the updated legislation.
While court proceedings continue, both parties are also engaged in ongoing behind-the-scenes negotiations, according to sources familiar with the matter. The government has made some concessions, allowing Barrick to repatriate 20 percent of its earnings into an international bank account—a privilege reportedly not extended to other foreign miners.
Barrick’s current mining licence in Mali is set to expire in February 2026. The outcome of both the legal case and ongoing contract talks could determine whether the company retains a long-term presence in the country.
