AFRICA’S mining industry is grappling with an escalating wave of legal disputes, particularly in the Sahel and Central Africa. As governments tighten control over their natural resources, mining companies are increasingly clashing with authorities over tax audits, changes in mining laws, and the lack of expertise in managing financial disputes.
Rising tensions in Mali and beyond
One of the most notable disputes is between Barrick Gold Corporation and the Mali government. Barrick’s operations in the country have been hit by tensions surrounding the Loulo-Gounkoto complex. In a recent statement, the company revealed it had filed for arbitration with the International Centre for the Settlement of Investment Disputes (ICSID) to resolve the ongoing disagreement. The dispute stems from new legislation that increases the state’s stake in mining projects from 20 percent to 35 percent, a move that has sparked widespread criticism among foreign investors.
Since 2023, the Mali military government and Barrick have clashed over these new rules, which are part of a broader trend of countries across the continent pushing for more control over their resources.
Resource nationalism on the rise
Beverly Ochieng, a senior analyst at Control Risks, argues that the rise of resource nationalism is behind many of these disputes. Governments are increasingly seeking to maximise their share of profits from valuable mineral reserves. ‘Countries feel that as the largest stakeholders, they should adjust legislation to ensure that the government earns more from these resources,’ Ochieng explains. While this trend has not yet led to large-scale conflicts elsewhere, it is likely to cause tensions in the future.
Political instability amplifying the crisis
Political instability in countries like Mali, Burkina Faso, and Niger has exacerbated these tensions. Shifts in government, security concerns, and sudden changes in mining regulations are disrupting long-standing partnerships. Some nations have even closed mining operations, accusing companies of environmental damage or failing to pay taxes.
Paul Ogendi, a law professor at the University of Nairobi, emphasises the importance of strong governance and legal frameworks in resolving these disputes. Without solid institutions, Ogendi warns, attempts at arbitration may fail, further destabilising the region and prolonging conflict.
Geopolitical shifts and new alliances
Geopolitical dynamics are also playing a significant role in the mining sector’s disputes. Countries are increasingly turning to new partners like China and Russia, which has led to the revocation of licenses from Western firms. Ochieng notes that these shifting alliances are changing the competitive landscape for Western operators, who now face stricter compliance challenges as they navigate these evolving markets.
‘Western companies face difficulties as new players enter the field,’ Ochieng tells VOA. ‘For African governments, diversifying partners offers both opportunities and risks.’
ICSID’s role in dispute resolution
The ICSID has been a key player in managing these disputes, with 88 proceedings concluded in 2024. Of these, 71 percent were settled by the tribunal, while 29 percent were either discontinued or settled outside the court. One of the year’s notable cases saw Tanzania and Canadian firm Montero Mining resolve a licensing dispute, with Tanzania agreeing to pay $27 million in damages.
As Africa’s mining sector continues to evolve, the balance between regulation, investment, and political stability will remain delicate. The increase in legal disputes underscores the challenges companies face in navigating these complex and rapidly changing environments.
