Mali seizes Barrick gold over revenue dispute
- Mali's military government has begun seizing gold stocks from Barrick Gold Corporation as part of a legal dispute over revenue sharing.
- Three tons of gold were confirmed seized and transported to Bamako, the Malian capital, amidst heightened tensions with the Canadian mining company.
- This seizure represents a notable escalation in the ongoing conflict, highlighting the Malian government's pressure on foreign mining companies to increase their contributions.
In recent months, Mali's military government has escalated its legal conflict with Barrick Gold Corporation by seizing three tons of gold, valued at approximately $180 million. This action stems from an ongoing dispute over the share of revenue owed by the Canadian mining company to the Malian state. The seizure was confirmed by a senior Barrick manager, who indicated that the gold had been transported from a mine near Kayes and moved to the capital, Bamako. The event was preceded by a warning from Mali's senior investigating judge about the impending action, igniting tensions between the government and the company. In December, the situation intensified when Mali issued an arrest warrant for Barrick's CEO, Mark Bristow, on unproven charges of money laundering. This warrant was part of broader legal actions initiated by the Malian authorities, which included orders for the seizure of Barrick's gold reserves. Four senior executives of Barrick were also arrested by Mali's military government during this turbulent period, reflecting the increasingly aggressive stance taken towards foreign mining entities operating in the region. Mali, a significant player in Africa's gold production, has faced challenges due to ongoing jihadi violence and dire economic conditions, which have fueled government efforts to bolster state revenues. Following the military takeover in 2020, the Malian government has been under pressure to enforce stricter regulations on foreign mining companies, aiming to shift resource profits towards national interests. This has led to previous incidents, such as the arrest of executives from the Australian company Resolute Mining, who were detained until the company paid a substantial tax dispute settlement to the Malian authorities. The current conflict with Barrick represents a critical juncture for Mali as it navigates its economic landscape while managing relationships with international investors. As tensions mount and gold seizures increase, the situation may have lasting implications for future investment in Mali’s mining sector as well as the nation's geopolitical dynamics.