Canadian mining firm Barrick Gold has publicly objected to a move by Mali’s military-led government to place one of its key mining sites under temporary state control amid an ongoing dispute over tax and profit sharing.
The row centres on the Loulo-Gounkoto gold mining complex in western Mali, near the Senegalese border. Barrick holds an 80% stake in the site, with the remaining 20% owned by the Malian state. The mine, which ranks among the largest gold deposits globally, has become a focal point in the government’s push to tighten its grip on the mining sector following amendments to Mali’s mining code last year.
The military junta, which came to power through coups in 2020 and 2021, has demanded a larger share of revenues generated by foreign mining operations. Last month, authorities in Bamako ordered the closure of Barrick’s local offices, citing the company’s alleged failure to pay taxes amounting to several hundred million dollars.
In a further escalation, four Malian employees of the firm were arrested in November 2023, and in January, authorities seized three tonnes of gold from the Loulo-Gounkoto site, leading to a suspension of operations.
Now, the government has asked a commercial court in Bamako to appoint an interim administrator to oversee the mining complex’s daily operations. A ruling on the matter is expected on 2 June.
Barrick, in a statement issued on Monday, said it saw “no legal or practical justification” for the court-appointed intervention, warning that the move would interfere with the mine’s operations. The company described the government’s actions as “an unprecedented escalation” with no legitimate basis under existing agreements.
Loulo-Gounkoto has been operational for two decades, with underground production starting in 2011. The complex also includes open-pit operations and holds an estimated gold reserve exceeding seven million ounces.
According to industry sources, the site contributed roughly $1 billion to Mali’s economy in 2023 alone. Gold plays a critical role in Mali’s finances, accounting for around 75% of its export earnings and about a quarter of the national budget.
Despite its mineral wealth, Mali remains one of the world’s poorest nations and continues to face ongoing challenges from extremist violence and economic instability.