Mali’s government has initiated the enforcement of a provisional order to seize gold stocks at Barrick Gold’s Loulo-Gounkoto site, escalating tensions between the military-led authorities and the Canadian mining giant. This move reflects Mali’s ongoing efforts to renegotiate mining contracts and secure a larger share of revenues from foreign companies.
- Mali’s government has begun seizing gold stocks at Barrick Gold’s Loulo-Gounkoto site.
- The site reportedly holds around 4 tons of gold, valued at nearly $380 million.
- Barrick Gold has warned it may suspend operations if restrictions are not lifted.
- The dispute is part of a broader trend in West Africa, where military governments are seeking increased mining revenues.
Background Of The Dispute
The conflict between Mali and Barrick Gold has been brewing since 2023, as the Malian government seeks to enforce new mining regulations aimed at increasing its share of profits from foreign mining operations. The Loulo-Gounkoto site is crucial for Barrick, accounting for approximately 14% of its estimated gold output for 2025.
The Seizure Order
According to a memo sent to Barrick’s staff in Mali, the government issued a provisional order to seize existing gold stocks last week, with enforcement beginning on January 11. The memo indicated that the company is facing significant pressure, as the Malian authorities have not shown any signs of backing down.
Financial Implications
The gold stock at the Loulo-Gounkoto site is estimated to be around 4 metric tons, which translates to nearly $380 million based on current gold prices. This seizure could have substantial financial implications for Barrick Gold, which has already indicated that it may need to suspend operations if the situation is not resolved quickly.
Broader Context In West Africa
Mali is not alone in its efforts to renegotiate mining contracts. Neighboring countries like Burkina Faso and Niger are also pushing for a larger share of mining revenues following a series of military coups that have shifted their alliances away from traditional partners like France and the United States towards Russia and other nations. This trend reflects a growing desire among West African nations to assert greater control over their natural resources.