Mali’s military government has temporarily assumed control of the Loulo-Gounkoto gold complex, a premier mining asset formerly operated by Canadian mining giant Barrick Gold (TSX: ABX). A commercial court in Mali ruled on Monday to place the pit into temporary management for six months, naming former health minister and accountant Zoumana Makadji as the interim manager.
This marks the first instance that such drastic measures have been applied against a mining company in Mali.
The intervention comes amid escalating disputes between Mali’s military regime and Barrick Gold. The Malian government accuses the company of:
Barrick maintains that its subsidiary remains the legal owner of the Loulo-Gounkoto complex, even though operational control has now shifted to an external manager. The company has initiated arbitration at the ICSID under the World Bank, seeking temporary measures to prevent further escalation and to secure its rights as provided under the mining agreement.
Regarding the detention of staff, Barrick criticized the actions as unjust and inconsistent with the trust, transparency, and accountability essential for sustainable, long-term partnerships.
The Loulo-Gounkoto complex, located in western Mali near the Senegal border, comprises both open-pit and underground mining operations. With an 80% stake by Barrick and a 20% stake by the Malian government, the mine contributed roughly $1 billion to Mali’s economy in 2023, ranking as one of West Africa’s largest gold producers.
Mali, one of Africa’s important gold producers, faces additional challenges amid persistent extremist violence and chronic poverty. Since the military seized power in 2020, the government has revised mining laws to assert greater national control over profits, pressuring foreign companies – including Barrick and Australia’s Resolute Mining (which previously settled tax disputes with a $160 million payout) – to obtain a larger fiscal contribution for the state.
