Mali starts seizing gold at Barrick site, miner says
The move suggests military-led authorities remain resolute in a stand-off over a contract
13 January 2025 - 16:00
byFadimata Kontao and Portia Crowe
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Bamako/Dakar — Mali’s government has begun enforcing a provisional order to seize gold stock at Barrick Gold’s Loulo-Gounkoto site, the Canadian miner said in a note to Malian staff, warning again that it may have to suspend operations at the complex.
The move suggests that Mali’s military-led authorities are not ready to back down in a standoff over a contract based on new mining rules as they push for a greater share of revenues from Western miners.
“A provisional order to seize our existing gold stock was issued last week and the Malian government began its enforcement on January 11,” Barrick said in the staff memo.
Two Barrick employees in Mali and a consultant working for mining companies confirmed the authenticity of the letter. Speaking on condition of anonymity, the employees said it was sent to staff on Sunday.
Barrick has not said what volume of gold is at risk, but one of the employees said Loulo-Gounkoto’s stock was about four tonnes, citing internal estimates. This amounts to nearly $380m, based on spot gold prices on Monday.
Responding to a request for comment, Barrick said it had nothing to add beyond what it said in a January 6 statement.
In that statement, the world’s second-biggest gold miner by volume had warned that it would have to suspend operations at Loulo-Gounkoto temporarily if restrictions on its gold shipments were not lifted within the week.
The threat remains on the table. In Sunday’s note to staff, Barrick said “if the situation is not resolved quickly” it may be forced to follow through on the suspension.
The Malian authorities did not immediately respond when asked to comment.
Loulo-Gounkoto accounts for about 14% of Barrick’s 2025 estimated gold output. Meanwhile gold is Mali’s top foreign currency earner, accounting for more than 80% of total exports in 2023.
The dispute comes at a delicate time for many Western miners in West Africa, industry insiders say.
Military governments in Mali, Burkina Faso and Niger are all trying to renegotiate terms to gain a bigger share of mining revenues after a series of coups that have seen them shift away from their traditional backers France, the US and the UN towards Russia and elsewhere.
Mali, Africa’s second-largest gold producer, has issued an arrest warrant for Barrick CEO Mark Bristow and detained Barrick staff.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Mali starts seizing gold at Barrick site, miner says
The move suggests military-led authorities remain resolute in a stand-off over a contract
Bamako/Dakar — Mali’s government has begun enforcing a provisional order to seize gold stock at Barrick Gold’s Loulo-Gounkoto site, the Canadian miner said in a note to Malian staff, warning again that it may have to suspend operations at the complex.
The move suggests that Mali’s military-led authorities are not ready to back down in a standoff over a contract based on new mining rules as they push for a greater share of revenues from Western miners.
“A provisional order to seize our existing gold stock was issued last week and the Malian government began its enforcement on January 11,” Barrick said in the staff memo.
Two Barrick employees in Mali and a consultant working for mining companies confirmed the authenticity of the letter. Speaking on condition of anonymity, the employees said it was sent to staff on Sunday.
Barrick has not said what volume of gold is at risk, but one of the employees said Loulo-Gounkoto’s stock was about four tonnes, citing internal estimates. This amounts to nearly $380m, based on spot gold prices on Monday.
Responding to a request for comment, Barrick said it had nothing to add beyond what it said in a January 6 statement.
In that statement, the world’s second-biggest gold miner by volume had warned that it would have to suspend operations at Loulo-Gounkoto temporarily if restrictions on its gold shipments were not lifted within the week.
The threat remains on the table. In Sunday’s note to staff, Barrick said “if the situation is not resolved quickly” it may be forced to follow through on the suspension.
The Malian authorities did not immediately respond when asked to comment.
Loulo-Gounkoto accounts for about 14% of Barrick’s 2025 estimated gold output. Meanwhile gold is Mali’s top foreign currency earner, accounting for more than 80% of total exports in 2023.
The dispute comes at a delicate time for many Western miners in West Africa, industry insiders say.
Military governments in Mali, Burkina Faso and Niger are all trying to renegotiate terms to gain a bigger share of mining revenues after a series of coups that have seen them shift away from their traditional backers France, the US and the UN towards Russia and elsewhere.
Mali, Africa’s second-largest gold producer, has issued an arrest warrant for Barrick CEO Mark Bristow and detained Barrick staff.
Reuters
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