A Malian court has ordered the Loulo-Gounkoto gold mining complex, one of Africa’s richest gold assets, be placed under provisional administration for six months, marking a major escalation in the country’s standoff with Canadian mining giant Barrick Gold over alleged unpaid taxes and legacy contract disputes.
The ruling, issued Monday by Judge Issa Aguibou Diallo, mandates that Zoumana Makadji, a chartered accountant and former Minister of Health, be appointed provisional administrator within 15 days.
While Barrick’s subsidiaries remain the legal owners of the mine, the order shifts operational control into the hands of an external authority.
Barrick, the continent’s largest gold producer, has operated in Mali for over 30 years. But relations with the current military-led government have soured.
Authorities accuse the company of benefiting from unfair deals approved by past governments and failing to pay substantial taxes.
In December, tensions boiled over when the government issued an arrest warrant for Barrick CEO Mark Bristow.
Barrick responded with a proposed $370 million settlement to resolve the issue.
Despite the legal proceedings, Barrick confirmed on its website: “While Barrick’s subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator.”
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Seeking to resolve the dispute, Barrick has filed for international arbitration through the International Centre for Settlement of Investment Disputes (ICSID).
But rather than await the outcome, the Malian government has upped the ante—detaining several Barrick employees and halting gold exports.
Barrick denounced the detentions, calling them “deeply concerning and inconsistent with the trust, transparency and accountability required for a genuine long-term partnership.”
The company further stated that “no credible rationale has been presented to justify this detention,” alleging the government is using its staff as leverage in ongoing negotiations.
Despite the escalation, Barrick says it remains committed to dialogue. “We remain committed to engaging with the government of Mali, in parallel, to identify a constructive, mutually acceptable solution,” the company stated.
The backdrop to the conflict is Mali’s fragile economic and political situation.
Following a 2020 military coup, the transitional government has increased pressure on foreign mining firms to boost state revenues.
Mali is one of Africa’s top gold producers, but it’s grappling with internal unrest and fiscal strain.
Last November, Australian company Resolute Mining faced a similar confrontation when its CEO and two employees were arrested in Bamako.
Their release came only after an $80 million payment was made to the government, with another $80 million pledged.
These developments reflect a broader shift in how Mali is handling its natural resources, raising red flags for foreign investors and casting doubt on the future stability of mining operations in the region.
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