RYAN CUMMINGS AND RONAK GOPALDAS: Mining sovereignty and power struggles in West Africa

The sight of helicopters ferrying 3 tonnes of gold from the Loulo-Gounkoto mining complex to Mali’s state-owned Banque Malienne de Solidarite in January symbolised a seismic shift in West Africa’s mining sector.

Worth about $245m, the seized physical gold stocks encapsulate the tension between multinational mining corporations and increasingly assertive military-led governments in the region. What lies beneath these disputes is a volatile mix of nationalism, geopolitics and a fundamental recalibration of who holds the cards in Africa’s resource wealth. 

At the heart of Mali’s standoff with Barrick Gold is a reimagined mining code that demands greater royalties and imposes stringent regulations on foreign operators. Barrick has been accused of tax evasion, environmental negligence and corporate irresponsibility — culminating in a staggering $500m fine and arrest warrants for senior executives, including CEO Mark Bristow. The mining company’s plight is emblematic of a broader trend across the region, where transitional governments in Mali, Burkina Faso and Niger are rewriting the rules of engagement in their extractive industries. 

These governments, born of coups and emboldened by nationalist rhetoric, argue that such policies are a bid for economic sovereignty. The goal? To claw back resources and revenues they claim have long been unfairly siphoned off by multinational corporations. For the mining giants, these actions represent an opaque and punitive business environment, jeopardising billions in investments. 

Barrick Gold is not alone in facing the wrath of Mali’s interim government. In November Australian firm Resolute Mining saw its CEO and two employees detained over allegations of forgery and misappropriation. Their eventual release came only after a $100m payment to the transitional government.

Neighbouring Niger has taken similar steps, with French uranium company Orano and Canada’s GoviEx Uranium embroiled in arbitration over revoked licences. Meanwhile, Burkina Faso President Ibrahim Traoré has threatened to withdraw permits from foreign firms, arguing that the country can manage its gold extraction independently. 

These developments signal a broader shift in the Sahel’s extractive landscape. Long dominated by Western firms, the sector is undergoing a transformation, with governments leveraging their resource wealth to assert economic autonomy. But beneath the rhetoric of self-reliance lies a geopolitical realignment with far-reaching consequences. 

As these nations sever ties with former colonial powers such as France and reject the influence of regional blocs including the Economic Community of West African States, they are aligning with Russia. In exchange for military support to combat insurgencies, governments in Mali, Burkina Faso and Niger have granted Moscow greater access to their resources. Reports suggest Russia’s paramilitary Wagner Group is deeply embedded in some of these countries, securing artisanal gold mining operations that have become critical to Russia’s economy under Western sanctions. 

Mali’s targeting of Barrick Gold has even sparked speculation that its government seeks to expropriate the Loulo-Gounkoto mines and hand them over to Russian control. The US Africa Command (Africom) has alleged that such moves could establish a precedent, potentially driving out Western mining firms entirely and leaving Russia to dominate the sector. While touted as a quest for economic sovereignty, this pivot risks alienating Western partners which, unlike Russia, have long prioritised regional development and stability. 

The disputes playing out in West Africa’s mining sector are about more than royalties and regulations. They are a microcosm of the region’s broader quest to redefine sovereignty in a postcolonial world. But at what cost? While these policies might generate short-term revenue and rally nationalist sentiment, the long-term implications could be dire. 

Alienating Western investors and donors will jeopardise much-needed development aid and investment. Furthermore, reliance on Russia — a partner driven by strategic interests rather than sustainable growth — could deepen the region’s vulnerabilities. Instead of becoming masters of their own resources, these governments risk trading one form of dependence for another. 

The way forward requires balance. Sahelian states must renegotiate their relationships with multinational corporations to ensure fairer distribution of resource wealth. But this should not come at the expense of transparency, stability or broader development objectives. As West Africa’s resource chessboard shifts, the question remains: can these governments play the game without becoming pawns in a larger geopolitical contest? 

The stakes go beyond the immediate region. With global demand for critical minerals and gold rising, the actions of West African states could set precedents for other resource-rich but economically vulnerable countries. This shifting dynamic could reshape the global extractive industry, compelling multinationals to rethink how they engage with host nations.

Ultimately, the challenge is to find a model that marries sovereignty with sustainability — a task that demands nuance, diplomacy and a willingness to bridge ideological divides. Only then can these nations truly turn resource wealth into long-term prosperity. 

• The authors are directors at Signal Risk.