Mali: Barrick Gold faces possible loss of control of Loulo-Gounkoto mine

n Thursday 15 May 2025, the Malian courts will rule on a crucial request from the authorities in Bamako: the appointment of a provisional administrator to run the Loulo-Gounkoto gold mine, one of the world's largest gold complexes, operated by the Canadian giant Barrick Gold. This hearing, which is being held at the Commercial Court in Bamako, could mark a decisive turning point in the tug-of-war between the Malian state and the mining company, against a backdrop of growing tensions over the country's economic sovereignty.

Since the adoption of a new mining code in August 2023, followed by a revision in 2024, Mali has been seeking to rebalance the sharing of revenues from the exploitation of its gold resources. The country, one of Africa's leading gold producers, wants to increase its stake in mining projects, notably by raising its share to 30% in new concessions and by ending the tax exemptions granted to foreign companies. Loulo-Gounkoto, 80% owned by Barrick Gold and 20% by the Malian state, is at the heart of these demands.

Bamako is also claiming hundreds of millions of dollars in back taxes, accusing Barrick Gold of failing to meet its tax commitments. According to the Malian authorities, the company has opened offshore accounts, a practice that is legal but disputed in the current negotiations. In response, Barrick Gold denounces the retroactive application of the new mining code and claims to have already paid 85 million dollars in October 2024 as part of the discussions, as well as an agreement negotiated in February 2025, which is still awaiting official signature.

Relations between Barrick Gold and the ruling junta, led by Colonel Assimi Goïta, have deteriorated sharply in recent months. In November 2024, four of the company's Malian executives were detained, and an international arrest warrant was issued for Barrick CEO Mark Bristow on suspicion of "money laundering". In January 2025, Malian authorities seized approximately three tonnes of gold, with an estimated value of $318 million, leading to a temporary suspension of mine operations by Barrick Gold. More recently, on 15 April 2025, the company's offices in Bamako were closed for "non-payment of taxes", according to the Malian tax authorities.

These tough actions are part of a wider strategy by the junta to assert its economic sovereignty. "Mali can no longer be satisfied with marginal shares in the exploitation of its wealth", said an adviser to the Ministry of Mines, speaking on condition of anonymity. This position is shared by other countries in the Alliance of Sahel States (AES), such as Burkina Faso and Niger, which have also reformed their mining frameworks to maximise national revenues.

For Barrick Gold, losing control of Loulo-Gounkoto would be a major blow. The mine, which produced 547,000 ounces of gold in 2022, is a strategic asset for the company, which operates in 18 countries. According to Jefferies analysts, the suspension of production could reduce Barrick's profits by 11% in 2025. Mark Bristow, an emblematic figure in the African mining sector, has denounced "human rights violations" concerning the incarceration of his employees and has initiated international arbitration proceedings to protect the company's interests.

In Mali, gold accounts for a quarter of the national budget and three quarters of export revenues. A return to control of Loulo-Gounkoto could strengthen public finances, but there are risks involved. The suspension of Barrick's operations has already affected 8,000 direct jobs and many local service providers, according to the company. Furthermore, a definitive break with a major player like Barrick could dissuade other foreign investors in a country already facing political instability and the threat of jihadism.

Despite the escalation, negotiations resumed in January 2025, a sign of a desire on both sides to avoid a total breakdown. Barrick Gold has said it is ready to "redefine the partnership" to increase the state's share of profits, while Bamako insists on compliance with the new mining rules. However, observers remain cautious. "The signing of the agreement negotiated in February seems to be blocked by internal political interests", notes a source close to the matter.

The outcome of the hearing on 15 May will be decisive. If the Malian courts approve the appointment of a provisional administrator, Barrick Gold risks losing all or part of its control over Loulo-Gounkoto, marking a symbolic victory for the junta. On the other hand, a rejection of the application could pave the way for a negotiated settlement that safeguards the interests of both parties.

In the meantime, Mali is sending out a clear message: the era of unbalanced mining contracts is over. It remains to be seen whether this quest for economic sovereignty will translate into lasting benefits for the country, or whether it risks further isolating a mining sector that is vital to its economy.