Canadian mining giant Barrick Gold Corporation has firmly rejected a move by Mali’s military-led government to place one of the country’s largest gold mining operations under court-appointed administration, escalating an ongoing dispute that underscores the mounting tensions between foreign investors and the West African nation’s ruling junta.
In a statement issued Monday, Barrick denounced the Malian government’s recent legal filing seeking provisional control over the Loulo-Gounkoto gold mining complex, calling the request “baseless” and an attack on lawful business operations.
“There is no basis — either in law or in practice — for the day-to-day operations at Loulo-Gounkoto to be handed over to a court-appointed interim administrator,” the company said, describing the move as “the latest escalation in a politically motivated campaign.”
High-Stakes Legal Showdown
The legal filing, submitted by Malian authorities to the country’s commercial court on May 8, seeks to impose temporary external oversight on the Loulo-Gounkoto mine. A court decision is expected by June 2, potentially setting a precedent for state intervention in private mining ventures.
Barrick, which holds an 80% stake in the site, views the move as a serious threat to its operations in the region and warned it could further destabilize investor confidence in Mali’s mining sector.
The Loulo-Gounkoto complex, operational for nearly 20 years, is among the most productive gold assets in Africa. In 2023 alone, the mine generated an estimated $1 billion in economic output, playing a vital role in a country where gold accounts for approximately 75% of export revenues and nearly 25% of the national budget.
A Broader Pattern of State Pressure
Mali’s ruling military junta, which came to power following coups in 2020 and 2021, has tightened control over key sectors of the economy — particularly mining — as it seeks to renegotiate foreign investment terms in favor of greater national benefit. In 2023, the junta revised the national mining code to claim a larger share of profits from extractive industries.
Barrick’s standoff with the government has been building for months. In April, Malian authorities ordered the closure of Barrick’s Bamako offices, citing alleged non-payment of hundreds of millions of dollars in taxes. The dispute deepened last November, when four local employees were detained without clear charges. Earlier this year, in January, the government seized three tons of gold from the company, prompting Barrick to suspend some operations.
While the company maintains that it is fully compliant with all legal and fiscal obligations, Mali has pursued increasingly aggressive measures to assert control and extract additional revenue from foreign firms.
Tensions Reflect Global Trend in Resource Nationalism
Mali’s dispute with Barrick reflects a wider trend of resource nationalism unfolding in several African nations, where governments are seeking to renegotiate legacy contracts and maximize domestic gains from natural resources amid rising global commodity prices.
Barrick’s CEO and executives have previously emphasized their long-term commitment to Mali but have also warned that unpredictable government actions pose a risk to operations, investment stability, and local development.
The mining sector remains a cornerstone of the Malian economy, employing thousands and sustaining ancillary industries. Analysts warn that any disruption to major sites like Loulo-Gounkoto could have significant ripple effects, both domestically and across West Africa.
Awaiting Court Ruling Amid Calls for Dialogue
As the June 2 court decision approaches, all eyes are on Mali’s judiciary to determine whether the government’s request for provisional administration will be granted — a ruling that could redefine the relationship between the state and foreign investors.
Barrick, meanwhile, continues to urge the Malian government to engage in direct dialogue and honor international investment agreements. “We remain committed to the long-term development of Mali’s gold sector, but we must be allowed to operate within the framework of legal certainty and mutual respect,” the company stated.
The outcome of this dispute will likely have far-reaching implications for Mali’s investment climate — and could signal how other mineral-rich, politically unstable nations choose to manage strategic resources in the years ahead.
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