Canada-based Barrick Gold, the world’s second-largest gold producer, has temporarily suspended operations at its Loulo-Gounkoto mine in Mali. This decision follows the seizure of gold stock worth approximately $245 million by the Malian government, marking a significant escalation in the ongoing standoff between the military junta and international mining companies. The confiscated gold, reportedly flown by helicopter to the state-owned Banque Malienne de Solidarité (BMS) in Bamako, highlights the junta’s increasingly assertive approach to extracting greater financial benefits from the country’s lucrative mining sector.
The Loulo-Gounkoto mining complex, located in western Mali, is one of Barrick’s tier-one operations, producing between 510,000 and 560,000 ounces of gold annually. It accounts for about 14% of the company’s projected gold output for 2025 and is a critical economic driver for Mali, contributing between 5% and 10% of the nation’s GDP. The suspension of operations at such a significant site has far-reaching implications for both Barrick and the Malian economy.
Tensions between Barrick and the Malian government have been simmering for months. In December 2024, the junta imposed an export blockade on gold shipments from Loulo-Gounkoto, effectively halting the mine’s operations. This followed the government’s issuance of an arrest warrant for Barrick CEO Mark Bristow and the detention of four company employees. These measures were part of the junta’s broader strategy to renegotiate existing mining agreements under a revised mining code introduced in 2023, which demands a larger share of revenues from international operators.
Despite these challenges, Bristow had expressed confidence in reaching an agreement, stating in an interview last year that Loulo-Gounkoto was not at risk of nationalization. However, negotiations have so far failed to produce a resolution. Reports suggest that Mamou Touré, a former Randgold executive with close ties to Bristow, has been acting as an intermediary in discussions with the junta. Observers believe Touré convinced the government it could secure more favorable terms from Barrick, further complicating the negotiations.
The export blockade and the subsequent seizure of gold stock have severely impacted Barrick’soperations. According to a company letter sent to staff, Barrick has been unable to ship gold out of Mali for over seven weeks, prompting the decision to halt production. The suspension represents a major blow to Barrick, as Loulo-Gounkoto is its second-largest gold producer after its Nevada operations in the United States.
Mali’s military junta, which seized power in a 2020 coup, has increasingly turned to resource nationalism to bolster its economic position. Finance Minister Alousséni Sanou recently told parliament that the revised mining code would generate $1.2 billion in revenue during the first quarter of 2025 alone. However, this aggressive approach risks alienating international investors and undermining the long-term sustainability of the mining sector, a cornerstone of Mali’s economy.
Barrick is not the only company to face challenges under the junta’s rule. Australian miner Resolute Mining experienced similar difficulties last year when its executives were detained over a tax dispute. Resolute ultimately paid $160 million to resolve the issue, highlighting the precarious environment for foreign businesses operating in Mali.
The suspension of operations at Loulo-Gounkotowill have significant economic repercussions for Mali, which relies heavily on mining revenues. The mine employs approximately 8,000 people, many of whom now face uncertainty about their livelihoods. For Barrick, the suspension could disrupt its global production targets and undermine investor confidence.
Strategically, the situation highlights the challenges faced by international mining companies operating in politically unstable regions. Barrick’s experience in Mali serves as a cautionary tale for other firms navigating the complex dynamics of resource nationalism and shifting political landscapes.
The temporary suspension of operations at Loulo-Gounkoto marks a critical juncture in the relationship between Mali’s junta and the international mining sector. While the government’s resource-driven economic strategy aims to secure greater revenues, its confrontational tactics risk alienating key investors and destabilizing the mining industry. For Barrick, the priority remains resolving the dispute and resuming operations, but the path forward is fraught with challenges in a region where political volatility continues to reshape the business environment.
