Barrick Gold Suspends Mali Operations Amidst Government Seizure

2025-01-16 global

Mali, Thursday, 16 January 2025.
Barrick Gold halts operations in Mali after the government seizes gold stockpiles and issues an arrest warrant for the CEO, impacting global gold markets.

Escalating Tensions and Immediate Impact

Barrick Gold Corporation, the world’s second-largest gold producer, has suspended operations at its Loulo-Gounkoto complex in Mali following the seizure of gold stockpiles worth $245 million by the country’s military government [1][4]. The situation intensified when Malian authorities began airlifting gold reserves from the mining complex on January 11, 2025 [4], and subsequently issued an arrest warrant for Barrick’s CEO Mark Bristow on money laundering allegations [7].

Financial Implications and Legal Dispute

The dispute centers around revenue sharing agreements, with Barrick offering to pay $370 million to resolve the situation [7]. The seized gold, approximately three tons valued at $180 million, was transported from a mine near Kayes to Bamako, the capital [7]. This development follows the arrest of four senior Barrick executives who remain in custody [7], highlighting the escalating tensions between the mining company and Mali’s military government.

Broader Industry Impact

The crisis reflects a wider pattern of pressure on foreign mining companies operating in Mali. Recently, Hummingbird Resources reached a $16.4 million agreement with the military-led government to operate under the country’s new mining code [4]. This follows a similar incident where Resolute Mining’s CEO was detained and released only after the company agreed to pay $160 million in total to resolve tax disputes [7].

Market Outlook and Future Implications

As Mali stands as one of Africa’s leading gold producers [7], this suspension could have significant implications for global gold markets. Barrick’s stock currently trades at $15.82 USD, with analysts setting an average target price of $21.81 USD [3]. The company maintains its commitment to engaging with stakeholders for a resolution [5], though the ongoing situation poses substantial risks to mining operations in the region [GPT].

Sources

Barrick Gold Mali