Bamako, Mali – Barrick Gold Corp., one of the world’s largest gold producers, is grappling with uncertainty following the seizure of 30 tonnes of gold, valued at approximately $2.4 billion, by Mali’s military junta.
The confiscation, which occurred at Barrick’s Loulo-Gounkoto complex—one of Africa’s most productive gold mines—stems from a dispute over alleged unpaid taxes. CEO Mark Bristow, speaking at a media briefing in Bamako on Friday, expressed frustration over the lack of clarity regarding the gold’s whereabouts. “I don’t know where they are keeping the gold because we haven’t been formally told where it is,” Bristow said.
The dispute centers on Mali’s claim that Barrick owes $325 million in unpaid taxes for 2023. The junta, which has tightened control over the country’s resources since taking power, has escalated tensions by detaining four Barrick employees since mid-January.
Bristow acknowledged ongoing negotiations, stating, “We are making headway,” but emphasized the complexity of the situation. Mali’s government is pushing for a greater share of economic benefits from the Loulo-Gounkoto complex, citing a 2020 audit that suggested Barrick’s contributions fell short of the 80% owed to the state under the mining agreement. Bristow refuted this, asserting that the company has fully complied with its contractual obligations.
The Loulo-Gounkoto complex, located in western Mali, is a cornerstone of Barrick’s global operations, producing over 500,000 ounces of gold annually. The seizure and detentions reflect a broader wave of resource nationalism in Mali, where the junta has sought to renegotiate terms with foreign mining companies to maximize state revenue. This development has raised concerns about the stability of foreign investments in Mali’s mining sector, which accounts for a significant portion of the country’s economy.
Barrick’s operations extend beyond Mali, with a notable presence in Papua New Guinea, where it operates the Porgera gold mine. Located in the Enga Province, Porgera is one of the country’s largest gold mines, contributing significantly to Papua New Guinea’s economy.
Unlike the challenges in Mali, Barrick’s operations in Papua New Guinea have not faced similar disruptions, though the company remains vigilant amid global geopolitical risks. The Porgera mine, which resumed operations in 2023 after a period of closure due to disputes with the government, underscores Barrick’s ability to navigate complex regulatory environments.
The situation in Mali has drawn attention to Barrick’s broader strategy of operating in high-risk jurisdictions. The company, headquartered in Toronto, Canada, also maintains significant operations in countries such as the Democratic Republic of Congo, Tanzania, and Nevada, USA.
Bristow, known for his hands-on approach to resolving operational challenges, has emphasized the importance of constructive dialogue with host governments. However, the detentions and gold seizure in Mali pose a significant test for Barrick’s ability to manage escalating tensions.
Analysts suggest that the outcome of the Mali dispute could have ripple effects across the mining industry, particularly in West Africa, where governments are increasingly asserting control over natural resources. For Barrick, resolving the issue without compromising its operations at Loulo-Gounkoto is critical, given the complex’s role in its global production portfolio.
As negotiations continue, Barrick remains focused on securing the release of its detained employees and clarifying the status of the confiscated gold. The company has not disclosed specific details about the talks, but Bristow’s comments suggest a cautious optimism.
Meanwhile, Barrick’s operations in Papua New Guinea and other regions continue to provide a buffer against the financial and operational risks posed by the Mali situation.
The developments in Mali highlights the challenges of operating in politically volatile regions, even as global demand for gold remains strong amid economic uncertainties. Barrick’s ability to navigate this crisis will likely shape its reputation as a resilient player in the global mining industry.
