Canadian Mining Company Halts Operations in Mali Amid Growing Unrest

A Canadian mining firm suspends its operations in Mali due to escalating security concerns and political instability, raising questions about the future of mining in the region.

Barrick Gold, a Canadian mining company, has announced plans to halt its operations in Mali due to an ongoing dispute with the country’s military government concerning allegedly unpaid taxes.

The company alleges that Malian authorities have confiscated gold stocks from its Loulo-Gounkoto complex in western Mali and transferred them to a custodial bank, effectively halting the shipment and sale of the precious metal.

As reported by sources referenced by Reuters on Monday, the government extracted approximately three metric tons of gold valued at $245 million from mining locations and transported them via helicopter on Saturday.

The world’s second-largest mining company has been in conflict with Mali since 2023 regarding a new extraction contract that would grant the landlocked country greater control over its mineral resources.

The former French colony ranks among Africa’s leading gold producers, hosting significant mining operations like the Loulo and Gounkoto mines. These are predominantly owned by Barrick (80%) with a 20% stake held by the Malian government. Following a coup in 2020, Bamako’s new leadership has aimed to increase revenue from this sector amid rising gold prices. In response, Mali introduced a revised mining code in 2023 that permits the government to acquire up to a 30% ownership in any forthcoming projects.

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In late September, the Canadian company revealed that it had reached an initial agreement with the military-led government to address concession disputes. They mentioned that once finalized, the contract terms—also overseeing Barrick’s partnership with Bamako—will be publicly disclosed.

Since then, tensions have intensified as Mali has detained senior executives from Barrick. Additionally, it has issued an arrest warrant for the CEO, Mark Bristow, on accusations of money laundering. The company refutes these allegations.

According to reports, Mali had earlier demanded approximately $500 million in unpaid taxes from Barrick. On October 24, the company revealed that it had paid $85 million to Mali as part of “ongoing negotiations.”

Earlier this month, Malian senior judge Boubacar Moussa Diarra ordered the seizure of three tons of gold from Barrick, as reported by court documents cited in various outlets. According to reports, the Sahel state’s economy ministry claimed that Barrick owes $5.5 billion to the government.

Last week, Barrick reported being unable to transport gold from its mining locations in the African country because of an “interim attachment order,” which it asserts violates the established dispute resolution mechanisms.

“Consequently, Barrick has regrettably begun the temporary suspension of operations as it continues to seek a resolution,” the company stated in a follow-up announcement on Tuesday.

In December, Barrick submitted a request for arbitration to the International Centre for Settlement of Investment Disputes in order to address the dispute with Mali regarding the Loulo-Gounkoto complex.