Mali : Barrick Gold, a tug-of-war over gold

For several months, Mali has been engaged in a major legal and economic dispute with Barrick Gold Corporation, operator of the Loulo-Gounkoto mining complex, one of the country’s largest gold deposits. At the heart of the dispute : a colossal tax debt.

According to Express24, the Malian government is accusing the Canadian company of owing around $512 million (300 billion FCFA) in back taxes and dividends. These claims stem from the findings of a government audit conducted in 2023, which revealed major financial anomalies in the management of the gold mines. According to the French media outlet Le Monde, tensions came to a head in December 2024 with the issue of arrest warrants for Mark Bristow, CEO of Barrick Gold, and Cheikh Abass Coulibaly, director of the Loulo-Gounkoto complex. The two executives are accused of money laundering in connection with financial transfers deemed irregular. Four of the company’s Malian executives were arrested in November and remain in detention. Barrick Gold rejects these accusations, calling them “attempts at political pressure” aimed at forcing the company to accept unfavorable conditions.

Blocking exports, in response to the dispute, the Malian government struck hard by suspending gold exports from Loulo-Gounkoto, a strategic pillar of the Malian economy. This decision paralyzes Barrick’s operations and threatens to reduce the company’s profits by 11% by 2025, according to financial analysts. For Mali, this measure is designed to increase the pressure on Barrick, while reaffirming its sovereignty over its natural resources.

A lose-lose arm wrestling match

In addition to the Barrick case, the Malian authorities have embarked on a vast movement to nationalize mining assets held by foreign compagnies : the finalization of the transfer of the Yatela gold mine from South Africa’s AngloGold Ashanti and Canada’s IamGold to the Malian state, and the sale by Australia’s Firefinch of its shares in the Morila mine to the public company Sorem. The objective is clear: to make “gold shine brighter for all Malians“, in the words of the government, as relayed by ViralMAG.

While the desire to ensure that the Malian people benefit more from the mining spin-offs is legitimate, the strategy of confronting foreign companies is not without risks for the country, the continent’s third largest gold producer : the jeopardizing of current investments and projects, the flight of capital and mining skills, the technical and financial difficulties for the State to exploit certain deposits alone, and the potential impact on jobs and induced economic activity.

ICSID as a last resort

Faced with the Malian government’s coercive measures, Barrick has appealed to the Washington-based International Centre for Settlement of Investment Disputes (ICSID). The company hopes to obtain financial compensation and restore its operating rights. However, ICSID proceedings are long and costly, and can take several years.  An unfavorable outcome for Barrick could dissuade other foreign investors from setting up in Mali, reinforcing the image of an unstable economic environment.

Mining reforms : a source of growing tension

Barrick remains one of the last gold producers in Mali to continue the tug-of-war with the government, which has already brought most other companies to heel. From Canada’s B2Gold and Allied Gold to Australia’s Resolute Mining, the other owners of industrial gold mines in Mali have agreed to pay a cumulative amount in excess of $200 million. Mali has also obtained the application of the terms of the new mining code to certain mines, notably the two lithium mines currently under construction.

This tug-of-war goes beyond a simple financial dispute. It raises fundamental questions about the governance of natural resources, transparency and the balance between national sovereignty and attractiveness to foreign investors. With Loulo-Gounkoto producing nearly 700,000 ounces of gold and contributing more than $1 billion to the local economy by 2023, the outcome of this conflict could redefine Mali’s mining and financial landscape for a long time to come.