Mali takes control of Barrick's gold mine amid escalating tensions

Mali, one of the poorest countries in the world, has taken decisive action against Barrick Gold Corporation, stripping the Canadian company of operational control of its Loulo-Gounkoto gold complex for six months. This ruling stems from rising tensions primarily related to tax disputes and broader regulatory issues within the mining sector, crucial to the nation's economy. The Bamako commercial court appointed Zoumana Makadji as the temporary administrator overseeing the site, emphasizing the military government's increasing grip on the mining industry to ensure national sovereignty over resources. Following a series of legal disputes and tensions, which peaked with the detention of Barrick's employees and arrest warrants against high-ranking officials, the government issued a provisional administration order on May 8 to regain operational control, asserting its position amid negotiations. Barrick still maintains an 80-percent stake in the complex while Mali holds the remaining 20 percent. In response, Barrick has launched arbitration proceedings to safeguard its rights under existing agreements with the Malian state, raising concerns over potential escalation as operations at the complex have already been disrupted. Despite these challenges, the mine has significantly contributed to the Malian economy, generating around $1 billion in 2023. However, the ongoing power dynamics show a distinct shift, as Mali's military junta continues to reinforce its authority through legislation and legal measures against foreign enterprises, including Barrick, leading to uncertainty in the mining sector.