Mali's Gold Seizure Fuels Tensions with Barrick

The Malian military government seized around three metric tons of gold from Barrick Gold's Loulo-Gounkoto complex, valued at $245 million. This action comes amidst a long-standing dispute over mining contracts. Barrick warns of potential suspension of operations amid escalating tensions.

The Malian government's military leadership has escalated its dispute with Canadian mining giant Barrick Gold by seizing three metric tons of gold valued at $245 million from the Loulo-Gounkoto complex. This move is part of a broader conflict over mining contracts under new rules introduced in 2023.

Witnesses reported gold being transported in two helicopter loads. The seizure follows a confiscation order issued by a judge, adding to a series of tensions between Barrick and Mali, including arrest warrants for executives and demands for unpaid taxes totaling $500 million, which Barrick contests.

The situation highlights a broader trend across Mali, Burkina Faso, and Niger, where governments are renegotiating mining terms to benefit more from soaring gold prices. Barrick warns that potential suspension of operations could significantly impact its financial performance, affecting future earnings.

(With inputs from agencies.)