Barrick Gold Dispute Escalates as Mali Seizes $117M in Bullion

Mali’s Sudden Seizure of Barrick’s Bullion Deepens Tensions

Mali’s government dramatically escalated its dispute with Barrick Gold Corporation by seizing over one metric ton of gold, worth approximately $117 million, from the company’s Loulo-Gounkoto mine. The unannounced seizure occurred via helicopters landing at the site and removing the bullion under provisional administrative control.

The West African nation has been at odds with Barrick since 2023, when it imposed retroactive tax demands and enforced a revised mining code that increased government royalties and ownership stakes. In response, Barrick halted operations and began international arbitration. Thursday’s seizure follows a similar event in January, when Mali confiscated three metric tons of gold without disclosing its destination.

This latest incident marks a rare and aggressive move in the global mining industry. Despite these setbacks, Barrick reaffirmed its commitment to resolving the conflict legally and continuing its long-term investment in Mali. A formal arbitration hearing is scheduled for late July.

Barrick Initiates Arbitration as Legal Battle Intensifies

Barrick has launched formal arbitration proceedings against Mali, invoking clauses from its longstanding mining conventions with the government. CEO Mark Bristow emphasized that Barrick is not leaving the country but is instead “pursuing resolution through proper legal channels.”

Meanwhile, other gold miners in Mali, such as Allied Gold and B2Gold, have opted for negotiated settlements. Barrick, however, holds one of the largest gold operations in the region, making the dispute a critical test case for mining investment security in West Africa.

The company continues to demand transparency regarding the gold already seized and urges Mali to adhere to international legal standards. The outcome of this arbitration could reshape mining governance across Africa.

SuperMetalPrice Commentary:

The seizure of over $117 million in gold signals a growing risk for foreign investment in Mali’s mining sector. This bold move by the government undermines trust in contractual stability and may deter future capital inflows. Barrick’s decision to pursue arbitration rather than immediate settlement indicates its intent to set a legal precedent. With gold prices soaring above $3,300 per ounce, control over high-yield operations like Loulo-Gounkoto is vital. The upcoming arbitration will be closely watched by global investors and mining regulators alike.