The tension between the Malian government and Barrick Gold, one of the world’s foremost gold mining companies, has escalated significantly. On Tuesday, Barrick reported that the authorities had closed the company’s office in Bamako and are now threatening to take control of its assets in the country.

Government Actions Against Barrick Gold

The military junta currently ruling Mali has ordered the closure of Barrick’s office in the capital while insisting that its Loulo-Gounkoto gold mining complex fall under provisional administration unless operations resume and owed tax payments are made. These demands come even as gold exports remain halted.

Context of the Dispute

Barrick Gold, which played a central role in Mali’s mining sector, is one of several western companies facing scrutiny from the current government. Last year, a number of executives and staff associated with these companies, including Barrick, were arrested amid rising tensions with the junta.

In January, Barrick suspended its activities in Mali following the government’s seizure of a portion of its gold. The company expressed regret over this temporary operational halt at its Loulo-Gounkoto complex, which is vital to its overall production.

Attempts at Resolution

Barrick stated that they had reached an agreement with the Malian government regarding the Loulo-Gounkoto complex, which was reportedly approved by the Ministry of Finance back in February. However, the company claims that the government has not executed this agreement.

Despite the governmental barriers, Barrick has reiterated its commitment to abide by the accord but expressed frustration at what it perceives as obstructionist actions from certain individuals within the government. They stated, “It is regrettable that the government continues to obstruct gold exports while simultaneously demanding tax payments on revenue it has actively prevented from being realised.”

Legal Action Considerations

In light of the ongoing challenges, Barrick has indicated that it may pursue legal remedy if the dispute remains unresolved. The conflict illustrates the complexities of operating in a politically shifting environment where foreign investments in the mining sector are increasingly scrutinized.

Economic Implications

Despite the backdrop of declining gold production last year, recent analysis from Peel Hunt noted that the new mining code in Mali had managed to increase the country’s tax revenues in 2024. This suggests ongoing regulatory changes could significantly affect the future dynamics between the government and mining companies in Mali.