BAMAKO, Mali (BN24) — Mali’s military junta has assumed operational control of the Loulo-Gounkoto gold mine, one of the world’s largest mining complexes owned by Canada’s Barrick Gold, amid a deepening dispute over unpaid taxes and strained relations between the West African nation and foreign investors.
On Monday, a Malian judge ruled that the Barrick-operated mine would be placed under provisional administration for six months, marking the most forceful step yet in the government’s bid to assert authority over the multibillion-dollar mining asset. Judge Issa Aguibou Diallo appointed Zoumana Makadji, a former health minister and accountant, to take over operations within 15 days, according to official correspondence with Barrick’s lawyers.
The mine is part of Barrick’s broader African portfolio that includes the Kibali mine in the Democratic Republic of Congo, with both sites ranking among the top 10 largest gold producers globally, per the company’s data.
While Barrick Gold retains legal ownership of the mine, the junta has effectively transferred operational control to a state-appointed administrator, the company confirmed in a statement, characterizing the move as part of a broader crackdown on foreign mining interests under Mali’s military rule.
The takeover follows a series of tense exchanges between Barrick Gold and Mali’s transitional government, which has accused the company of unpaid taxes and questionable contracts signed with prior administrations. The conflict intensified in December when an arrest warrant was issued for Barrick CEO Mark Bristow, and the company offered to pay $370 million in a bid to resolve the dispute.
Despite submitting a formal arbitration request to the International Centre for Settlement of Investment Disputes (ICSID), Malian authorities escalated pressure by suspending gold exports, detaining several Barrick employees, and now seizing mine operations outright.
A source close to the Malian government told AFP that the court’s decision was intended to “protect national economic interests” and “prevent the sudden closure of the mine in the absence of a revised agreement.”
Barrick Gold responded with alarm, stating that its detained employees remain “unjustly imprisoned” and were being “used as leverage” in negotiations. “To date, no credible rationale has been presented to justify this detention,” the company said. “The Government’s ever-increasing demands have lacked both factual and legal foundation.”
Despite the rising tensions, Barrick reaffirmed its commitment to engaging with Mali’s government through both arbitration and direct dialogue, aiming for a “constructive, mutually acceptable solution.”
The company also warned that the current actions undermine the transparency and trust necessary for long-term partnership, hinting at potential risks for Mali’s broader investment climate.
Mali, one of Africa’s top gold producers, has grown increasingly confrontational with foreign mining companies since its military seized power in 2020. The country has faced ongoing jihadist violence, severe economic hardship, and rising poverty, leading the junta to seek increased revenue from natural resources.
In a parallel incident last November, the CEO of Australian firm Resolute Mining and two employees were arrested in Bamako during a similar tax dispute. They were released only after the company paid $80 million upfront, with a promise of an additional $80 million later.
The developments signal a broader shift in Mali’s approach to resource governance, raising alarms among international investors and human rights advocates alike, who warn that arbitrary detentions and asset seizures may further isolate the country economically.
As the dispute with Barrick Gold continues, industry analysts say the outcome could serve as a critical test of Mali’s willingness to honor international contracts and its capacity to attract or retain credible foreign investment.
