Barrick suspends Loulo-Gounkoto operations after Mali seizes gold stock

Barrick Gold confirmed on Tuesday that it has suspended production at its Loulo-Gounkoto gold complex in Mali after the country's authorities seized a gold stockpile worth about $245m, marking the most serious escalation yet in a two-year standoff between the Canadian miner and Mali's military government.

The company said it had “regrettably initiated” a temporary halt to operations while it continued working towards a resolution, according to a statement reported by Reuters. Mali's junta had blocked gold exports from Loulo-Gounkoto in December, and shortly afterwards issued a warrant for the arrest of then Barrick chief executive Mark Bristow.

A dispute two years in the making

The stand-off traces back to Mali's 2023 mining code, which raised taxes on gold producers and increased the state's stake in mining projects. Barrick and the government have negotiated on and off since then, with Bristow warning last year that suspension was a real risk if the two sides could not agree. On 6 January, Barrick said it would have “no choice” but to halt the mine if restrictions were not lifted “within the coming week” — a deadline that passed without resolution.

According to reports, the seized gold stock was flown out by helicopter to the state-owned Banque Malienne de Solidarité in the capital, Bamako. The Financial Times reported that Mamou Touré, a former Randgold executive who once worked under Bristow, has been involved in negotiations between Barrick and the Malian government.

What it means for Barrick

Loulo-Gounkoto is no small loss. The complex produces between 510,000 and 560,000 ounces of gold a year and is considered one of Barrick's tier-one assets, accounting for around 14% of the group's estimated 2025 gold output. Its suspension comes at a painful moment for the company, with the mine unable to capture the benefit of a sharp rally in the gold price.

For Mali, the dispute highlights the tension between a resource-nationalist push to capture more value from its mining sector and the risk of driving away the investment that sector depends on. Loulo-Gounkoto is widely regarded as the country's single most valuable mining asset.

What happens next

Neither side has signalled an imminent breakthrough. Barrick has said it wants to reopen the mine once it is able to resume shipping gold, but the government has given no timeline for lifting the export block or returning the seized bullion. The impasse sets the stage for a lengthy legal and political battle that will shape how other international miners weigh operating risk in Mali going forward.

Sources

• Miningmx: Barrick confirms suspension of Mali mine after gold seized, 14 Jan 2025

Photo: A haul truck at Mali's Yatela gold mine, illustrating the country's industrial gold-mining operations. Iamgold, Wikimedia Commons, CC BY-SA 3.0.