Canadian mining company loses control of African location
(MENAFN) Mali has temporarily taken control of its largest gold mining operation from Canadian company Barrick amid escalating tensions over alleged unpaid taxes and royalties. A court in Bamako ordered that the Loulo-Gounkoto gold complex be managed by a government-appointed provisional administrator for six months. Soumana Makadji, a former health minister and accountant, was named to oversee the mine during this period.
This decision follows the Malian government’s closure of Barrick’s offices and warnings to seize the mine, which has been inactive for several months. Mali’s military authorities justified the move as necessary to safeguard economic interests, while Barrick condemned the court ruling as illegal and a violation of its contracts.
Barrick stated that the ruling came after the government blocked gold exports and confiscated gold stocks from its subsidiaries, actions Barrick considers unjustified and that led to suspending operations. The Loulo-Gounkoto mines are 80% owned by Barrick, with the Malian government holding the remaining 20%.
Operations were halted in January following the seizure of three tons of gold and export bans over alleged unpaid revenues, claims Barrick denies. Although a settlement was reached in February to resume mining after an earlier $85 million payment, negotiations broke down when Mali demanded a lump-sum tax payment of 125 billion CFA francs ($197 million), while Barrick preferred a payment plan.
Tensions worsened after the detention of four Barrick employees accused of money laundering and financing terrorism—charges the company denies. Barrick has filed a dispute with the World Bank’s arbitration tribunal, emphasizing that while it has made concessions in good faith, it cannot accept terms threatening the mine’s legal and operational viability.
Mali introduced a new mining code in 2023, allowing the state to claim up to 30% in new projects to increase revenues amid rising gold prices. Bamako also hopes a recent deal with Russia’s Yadran Group to open a gold refinery, 62% owned by Mali, will boost national earnings from gold production.
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