KEY POINTS
- Mali seizes $245 million in Barrick Gold stocks, escalating tax dispute and threatening Loulo-Gounkoto mining operations.
- Barrick faces 11% earnings cut if operations halted; shares drop 1.9% after Mali’s dramatic seizure action.
- Regional governments pressure miners for higher revenues amid record gold prices; legal tensions threaten Barrick’s African portfolio.
Barrick Gold Corp., one of the world’s leading mining companies, faces a critical operational setback in Mali as the government seizes $245 million worth of gold stock from its Loulo-Gounkoto mining complex.
The dramatic action, reportedly executed with military helicopters over the weekend, marks a significant escalation in a long-standing dispute over taxes and mining revenues.
In a letter to Mali’s government, Barrick warned that the seizure had left its gold uninsured, jeopardizing security and accountability. The company has threatened to suspend mining operations at Loulo-Gounkoto, a cornerstone of its African portfolio and a significant contributor to its global gold output.
Seized gold redirected to state bank
According to MiningWeekly, the confiscated gold is being moved to the state-owned Banque Malienne de Solidarité in Bamako. Eyewitness accounts described military helicopters transporting the bullion in two separate trips. A Malian court cited $5.5 billion in alleged unpaid taxes as justification for the seizure, far surpassing previous government claims.
Barrick shares dropped 1.9 percent on the Toronto Stock Exchange following the news. Analysts at Jefferies estimate that halting production at Loulo-Gounkoto could slash the company’s 2025 EBITDA by 11 percent, heightening financial pressures on the mining giant.
Intensifying legal clash
The conflict between Barrick and Mali’s government, dating back to 2023, has escalated dramatically. Mali’s authorities have detained company executives, blocked bullion shipments and issued an arrest warrant for CEO Mark Bristow. On January 2, the International Centre for the Settlement of Investment Disputes formally registered Barrick’s arbitration request against Mali, signaling the start of an international legal showdown.
“Mali’s latest actions represent a stark escalation in an already fraught relationship,” Barrick noted in internal communications to staff in Mali.
Regional governments turn up the heat
Mali’s actions reflect a broader trend in West Africa, where military-led governments in countries like Burkina Faso and Niger are renegotiating mining contracts to secure larger revenue shares. With gold prices hovering near record highs, governments are increasingly assertive in demanding better terms from international miners.
Barrick, which owns 80 percent of the Loulo-Gounkoto complex alongside Mali’s 20 percent stake, denies the allegations of unpaid taxes.
The company’s quarterly earnings report shows it paid $85 million to Mali in October, a figure it claims is consistent with its obligations.
Barrick disputes the $500 million in tax liabilities previously claimed by Mali, let alone the $5.5 billion now cited as grounds for the seizure.
Future uncertainty clouds African operations
The deteriorating relationship between Barrick and Mali’s government casts a shadow over the company’s future in the region. Recent months have seen employee detentions, disrupted operations, and increasing political tensions.
The seizure of gold underscores the growing risks international miners face as they navigate regulatory and geopolitical pressures in resource-rich but politically volatile regions.
Neither Barrick nor Malian officials have responded to requests for comment, with sources highlighting the sensitive nature of ongoing legal proceedings. As the company battles to resolve the dispute, its ability to maintain a foothold in Mali and protect its African mining portfolio remains uncertain.
For Barrick, a swift resolution is critical to mitigating operational risks, safeguarding its reputation, and maintaining investor confidence amid a challenging global mining landscape.
