Mali Begins Seizing Gold Stock at Barrick Gold Site Amid Stricter Mining Rules

Confidence UbaniJanuary 13, 20251 Mins read639

Barrick Gold's Loulo-Gounkoto complex in Mali | Credits: Barrick Gold

According to a memo obtained by Reuters, Mali’s government has begun seizing gold stock at Barrick Gold’s Loulo-Gounkoto site. Officials reportedly enforced the provisional order on 11 January, blocking exports and disrupting operations.

Barrick Gold, the world’s second-largest gold producer, said authorities issued the order on 6 January. The company warned on Monday that it might be on Monday, the company Loulo-Gounkoto complex, if the shipment restrictions were not lifted within a week.

Sources familiar with the matter told Reuters that the seized stock includes about four metric tonnes of gold. Barrick employees at the site have been instructed to prepare for a possible suspension. The company owns 80 per cent of the Loulo-Gounkoto mine, while the Mali government controls the remaining 20 per cent.

Mali’s government is reforming the mining sector to boost national revenue and ensure fairer resource sharing. The 2023 mining regulations reflect this objective, but Barrick argues the new rules should not apply to existing agreements.

This dispute is part of a broader crackdown by the Alliance of Sahel States (AES). Recently, the Burkinabe Council of Ministers also finalised the legal framework of the country’s July 2024 mining code. This move introduces new regulations and reforms to increase revenue from the mining sector. The AES governments are renegotiating mining terms to gain greater resource control and reduce foreign dependency.

Mali, Africa’s second-largest gold producer in 2023, relies heavily on mining revenues. Following implementing stricter regulations last month, Barrick reported worsening conditions at Loulo-Gounkoto following foreign miners. It accused authorities of employees without cause and blocking gold shipments.

According to analysts at Jefferies, a suspension could reduce Barrick’s 2025 earnings by 11 per cent. The Loulo-Gounkoto complex will contribute 14 percent of Barrick’s projected gold output in 2025. Neither Barrick Gold nor Mali’s mines ministry has commented on the site’s recent development.