Tensions in Mali’s mining sector have further escalated when Mali’s government has started enforcing a provisional order to remove gold stock from Barrick Gold’s Loulo-Gounkoto mine complex, according to sources familiar with the matter.
Mali has begun seizing gold at the Loulo-Gounkoto site using helicopters, with the Canadian miner warning in a note to its Malian staff that it may have to suspend operations at the complex. The operation — part of the Malian government’s policy of tightening control and increasing its share of profits from resource extraction — was launched at the weekend, with reportedly about four metric tons of gold valued at approximately $245 million having been confiscated by Monday January 13. Barrick Gold owns an 80% stake in both Loulo and Gounkoto while the remaining 20% is held by Mali.
Tensions in Mali’s mining sector have gradually escalated, with the junta-led authorities taking drastic measures, including detaining senior executives from the company and issuing an arrest warrant for Barrick CEO Mark Bristow. Last week, the world’s second-biggest gold miner by volume announced that it may be forced to suspend operations in the west African country if restrictions on gold shipments were not lifted within a week.
Barrick is now banned from exporting gold from Loulo-Gounkoto’s stock on site, which further disrupts normal operations. Industry insiders warn that the standoff in Mali, coupled with threats by Burkina Faso’s Government to withdraw mining permits from some foreign companies, could deter future investments in West Africa.