Canada’s Barrick Gold has confirmed the suspension of its operations in Mali after the government seized gold stocks from the Loulo-Gounkoto mining complex.
Barrick holds an 80% stake in the mining complex, while the Malian Government owns the remaining 20%.
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The seizure, which occurred over the weekend, reportedly involved approximately 3t of gold valued at $245m (C$351.15m), according to a report by Business Day, citing sources.
The seizure stemmed from a confiscation order issued last week by Judge Boubacar Moussa Diarra.
Mali’s Economy Ministry asserted that Barrick’s two mines owed a total of $5.5bn to the government, a figure significantly higher than previous estimates.
The confiscated gold is set to be transported to the state-owned Banque Malienne de Solidarite (BMS) in the capital, Bamako, the report said.
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By GlobalDataIn a letter addressed to the Malian Government, Barrick stated that the seizure necessitated a temporary suspension of mining activities at both the Loulo and Gounkoto mines.
Barrick highlighted in its correspondence with the Malian Government that the seizure of the gold rendered it uninsured.
The company is awaiting confirmation that the gold has arrived at BMS and requires proof of insurance for the gold held there.
Barrick has been embroiled in a dispute with the Malian Government since 2023 regarding a contract tied to new mining regulations.
Tensions have escalated, leading to the detention of senior executives and an arrest warrant issued for Barrick CEO Mark Bristow.
On Friday, the International Centre for Settlement of Investment Disputes registered Barrick’s request for arbitration proceedings against Mali, as indicated by public documents.
In a note to its Malian staff on Sunday, Barrick warned that the government had begun enforcing the gold seizure order and reiterated the potential for a prolonged suspension of operations due to the ongoing dispute.
Reports suggest Mali previously demanded approximately $500m in unpaid taxes from Barrick, which the company denies.
Barrick’s quarterly earnings report indicated that the company paid $85m to the Malian Government in October.
Military governments in Mali, Burkina Faso and Niger are currently seeking to renegotiate terms to secure a larger share of mining revenue amid record-high gold prices.
