Canadian mining giant Barrick Gold has announced a temporary suspension of operations at its Loulo-Gounkoto mine in Mali after the Malian government seized gold stocks from the site. The move comes amid a prolonged revenue dispute between the company and Mali’s military-led administration.
The Malian authorities have intensified efforts to pressure foreign companies, promising a fairer distribution of wealth from the nation’s gold mining industry, which is critical to its economy.
Barrick Gold stated on Tuesday that it remains restricted from exporting gold from the Loulo-Gounkoto mining complex, one of the largest gold operations globally. In addition, Malian officials executed an interim attachment order by transferring the existing gold stocks to a custodial bank.
The company, which owns an 80% stake in the mine while Mali holds the remaining 20%, said it was compelled to suspend operations temporarily as it continues discussions to resolve the dispute.
Mali’s military rulers, who came to power in a 2020 coup, have blocked gold shipments from the site for over seven weeks. On Saturday, authorities used a helicopter to seize more than three tonnes of gold, according to a security source and an industry insider.
Barrick Gold has not confirmed the exact quantity or value of the seized gold.
The dispute underscores the tension between Mali’s government and foreign firms over resource control. The West African country, despite being one of Africa’s top gold producers, remains one of the poorest nations globally.
Gold mining contributes significantly to Mali’s economy, accounting for 25% of its national budget, 75% of export earnings, and 10% of its GDP. The government’s actions are seen as part of broader efforts to increase its share of revenues from lucrative industries operating within its borders.
Barrick Gold expressed regret over the disruption and reiterated its commitment to finding a resolution that allows for the resumption of normal operations.