In a bold and escalating standoff with one of the world’s largest gold producers, a Malian court has ordered the provisional takeover of Barrick Gold’s Loulo-Gounkoto mining complex, citing unpaid taxes and allegations of unfair historical contracts. The move places a major Canadian-owned asset under state-appointed administration, adding new uncertainty to Mali’s already tense relationship with international investors.
The ruling, issued on Monday by Judge Issa Aguibou Diallo, mandates that the mining complex be placed under provisional control for six months. Zoumana Makadji, a chartered accountant and former Malian Minister of Health, has been named as the court-appointed administrator and is expected to assume the role within two weeks.
This decision effectively hands over day-to-day operations of one of Africa’s most lucrative gold sites, though Barrick Gold retains legal ownership—for now.
Barrick Gold, which has operated in Mali for over 30 years and remains one of the continent’s leading gold producers, is being accused by the military-led government of significant tax evasion and exploiting favorable contracts granted under previous administrations.
The confrontation boiled over in December 2024 when an arrest warrant was issued for Barrick CEO Mark Bristow, and the company proposed a $370 million settlement to resolve the impasse. Rather than de-escalating, the conflict has since intensified, culminating in this court-ordered takeover.
Barrick, in a statement, confirmed the court order and reiterated that while its subsidiaries still legally own the complex, control has been forcibly shifted. The company also revealed that it has filed for international arbitration with the International Centre for Settlement of Investment Disputes (ICSID), seeking a legal resolution.
Further complicating the situation, several Barrick employees have reportedly been detained by Malian authorities in what the company described as a deeply troubling and unjustified act. The company strongly criticized the detentions, suggesting they are being used as bargaining chips in the ongoing negotiations.
“No credible rationale has been provided for these detentions,” Barrick said. “They undermine the principles of transparency and accountability that are essential for any long-term partnership.”
Malian officials have not publicly responded to the company’s claims of arbitrary detention.
Also, read: Mali Begins Construction of Major Gold Refinery with Russian Partnership, Aims for Greater Resource Control
This is not the first time Mali has turned up the heat on international mining operators. In late 2023, Australian firm Resolute Mining found itself in a similar situation when its CEO and two staff were arrested in Bamako. They were only released after the company paid $80 million to the government, with a promise to pay an additional $80 million later.
Since a military coup in 2020, Mali’s transitional government has leaned into resource nationalism—seeking to renegotiate contracts, increase state control, and ramp up revenues from its gold industry, which is a backbone of the economy.
Analysts say these recent actions send a strong message to foreign investors: contribute more or risk losing access.
The current standoff with Barrick Gold is raising concerns among international observers about Mali’s investment climate. While the government frames these moves as necessary to ensure fair benefit from the country’s resources, critics warn that heavy-handed tactics may scare off future investment—especially at a time when Mali is grappling with security threats and economic strain.
For now, all eyes are on how the arbitration process unfolds and whether Mali’s latest push for control over its gold sector will lead to a sustainable outcome or a deeper rift with global partners.
