Mali’s ruling military junta has seized gold stocks from the Canadian mining giant Barrick Gold, prompting the company to suspend operations at its lucrative Loulo-Gounkoto mining complex.
The West African nation, grappling with mounting pressure to deliver equitable wealth distribution from its natural resources, has taken extraordinary steps, including deploying a helicopter to the site to retrieve over three tons of gold.
Barrick Gold, which holds an 80% stake in the Loulo-Gounkoto operation, confirmed the incident on Tuesday, stating that authorities executed an interim attachment order, transferring the gold to a custodial bank. The Malian government retains the remaining 20% ownership in the site, one of the country’s most productive mines.
“The company remains restricted from shipping gold from Loulo-Gounkoto mining complex,” read Barrick’s official statement. “As a result, Barrick has regrettably initiated the temporary suspension of operations while it continues to work towards a resolution.”
This suspension adds significant uncertainty to the West African nation’s mining sector, which accounts for approximately 80% of Mali’s export revenue. Gold, often called the backbone of Mali’s economy, has long been a lifeline for the nation’s fiscal stability. However, disputes over how much of that wealth should remain in local hands have simmered for years, intensifying after the country’s 2020 military coup.
The rift between Barrick Gold and Mali’s junta centers on revenue-sharing agreements, an issue that has dominated recent conversations about the country’s mining future. The junta has sought to renegotiate terms to ensure a “fairer” distribution of profits for Malians, a promise that has won them some domestic support but put them at odds with international investors.
For more than seven weeks, Malian authorities have blocked Barrick Gold from exporting gold from the Loulo-Gounkoto mine, frustrating the company’s operations. Matters came to a head last weekend when, according to sources cited by Agence France-Presse, Malian officials sent a helicopter to the site to physically seize gold stocks. The action resulted in more than three tons of gold being transported to government custody.
While neither Malian authorities nor Barrick Gold confirmed the exact value of the seized gold, industry estimates place the worth in the hundreds of millions of dollars. The move underscores the junta’s determination to assert control over one of the country’s most vital sectors, even at the risk of alienating a leading foreign investor.
Mali’s gold production is among the largest in Africa, with major mining projects like Loulo-Gounkoto attracting foreign investors over decades. However, the 2020 military takeover has introduced a new era of uncertainty, with the junta signaling a shift away from the business-as-usual approach of prior governments.
Analysts note that this seizure marks one of the most severe interventions to date, potentially setting a troubling precedent for other international companies operating in the country. While the junta argues that such moves are aimed at ensuring equitable revenue distribution, critics warn that they may backfire, scaring off investors and stifling economic growth in the long run.
Barrick Gold, which operates mines across the globe, has maintained that it is in compliance with local laws and is open to dialogue. Despite these assurances, the company’s temporary shutdown of Loulo-Gounkoto has wide-ranging implications. The site, one of Barrick’s flagship African operations, plays a crucial role in global production totals and in sustaining the economies of nearby communities through employment and infrastructure support.
The dispute occurs against the backdrop of a fragile political and economic landscape in Mali. Since the military junta overthrew the government in 2020, relations with Western nations have soured, leaving the country increasingly reliant on regional alliances and internal resources. The junta’s efforts to revise mining contracts and seize assets appear to be part of a broader strategy to consolidate control and placate domestic demands for greater economic sovereignty.
However, industry experts warn that such measures risk creating instability in a sector where predictability and trust are essential. “Seizing assets from companies like Barrick sends the wrong message to international investors,” said a regional economist. “While the junta might gain short-term leverage, it could hurt Mali’s ability to attract investment in the long term, jeopardizing the mining sector’s contributions to the economy.”
As negotiations between Barrick Gold and Malian authorities continue, the international community is watching closely. The outcome of this dispute could have lasting repercussions not only for Mali’s mining industry but also for broader investor sentiment across resource-rich but politically volatile regions.
In its statement, Barrick expressed optimism for a resolution but underscored the significant challenges created by the junta’s actions. “We remain committed to working towards a resolution in the interests of all stakeholders,” the company said, while highlighting its disappointment over the disruption.
For now, the gold remains in government custody, and the mining site lies idle. The eyes of Mali, and the world, are on the Loulo-Gounkoto complex, where the fate of billions in resources—and the nation’s economic trajectory—hang in the balance.
