Court places Loulo-Gounkoto complex under state management for six months amid rising tensions between Barrick Gold and Mali’s military government
BAMAKO, MALI – A Malian court on Monday ordered the Loulo-Gounkoto gold mining complex, operated by Canada-based Barrick Gold Corporation, into provisional state administration for six months—an unprecedented move in the intensifying standoff between the West African nation’s military government and one of the world’s largest gold mining firms.
The court ruling hands over operational control of Barrick’s largest African mining asset to government-appointed managers, and analysts warn the development could spook investors and further destabilize Mali’s critical mining sector.
“This ruling represents a major escalation,” said a Bamako-based mining consultant who requested anonymity due to the sensitivity of the situation. “Foreign companies operating in Mali are now facing a radically altered investment climate.”
Mounting Tensions
The legal decision follows months of rising tensions between Barrick Gold and Mali’s military-led government, which has ruled the country since a 2020 coup. At the heart of the conflict are allegations of unpaid taxes and what authorities describe as exploitative agreements inherited from previous administrations.
In December 2024, the dispute reached a boiling point when the government issued an arrest warrant for Barrick CEO Mark Bristow, a bold and rare move against a sitting head of a major multinational. At the time, Barrick offered to pay $370 million to settle the matter, but talks quickly collapsed.
In response to the increasing pressure, the mining giant filed for international arbitration at the International Centre for Settlement of Investment Disputes (ICSID), seeking a formal resolution to what it described as unjustified government action.
Mine Closed, Offices Shut
The Loulo-Gounkoto complex, located in western Mali near the border with Senegal, had already been shuttered in recent months due to the ongoing legal and regulatory conflict. In May 2025, Malian authorities closed Barrick’s offices in the capital, Bamako, and suspended the company’s gold exports—a critical revenue stream for the miner and the state alike.
Barrick officials say several of their employees remain detained by Malian authorities without due process, further exacerbating diplomatic and business tensions.
In a press statement issued late Monday, Barrick Gold confirmed its intention to appeal the court’s ruling and warned that the action could damage Mali’s already fragile investment landscape.
“This court decision undermines the rule of law and sends a chilling message to current and prospective investors,” the company said. “Barrick remains committed to resolving the matter through legal and diplomatic channels.”
Strategic Importance of Loulo-Gounkoto
The Loulo-Gounkoto complex is one of Barrick’s most lucrative assets, producing more than 500,000 ounces of gold annually and employing over 4,000 local and international workers. It has also contributed significantly to Mali’s economy, with taxes, royalties, and community investments running into hundreds of millions of dollars over the years.
Mali is Africa’s fourth-largest gold producer, and mining accounts for nearly 10% of its GDP and 80% of its export revenue. However, the country has long struggled with chronic poverty, political instability, and a decade-long insurgency in the north led by al-Qaeda and Islamic State affiliates.
Since taking power in a military coup nearly five years ago, the ruling junta has intensified scrutiny of foreign mining contracts and launched a series of legal and administrative measures aimed at increasing state revenue from mineral resources.
“We are correcting the imbalances of the past and ensuring Mali benefits fairly from its own natural wealth,” said a government spokesperson on national television. “No foreign entity is above our sovereign laws.”
Investor Anxiety Grows
Industry experts are warning that the government’s approach—though popular domestically—could have long-term consequences for Mali’s investment appeal.
“The perception now is that Mali is willing to nationalize key assets when negotiations break down,” said Nana Kouassi, a mining analyst at Abidjan-based AfricaInvest. “That adds risk premiums to any future investment deal in the country.”
The situation is particularly concerning for other foreign companies operating in Mali, such as B2Gold, Resolute Mining, and Hummingbird Resources, who may now face additional government scrutiny or pressure to renegotiate terms.
Some diplomatic observers believe the standoff with Barrick could also test Canada’s foreign policy posture in West Africa, especially as other Western nations—including France and the U.S.—have experienced recent diplomatic strains with Mali’s military government.
International Arbitration Looms
Despite the court order, Barrick Gold appears determined to pursue international legal remedies. The ICSID arbitration process could take months or even years, depending on the complexity of the claims and Mali’s response.
In the meantime, the company’s operations remain suspended, its employees are in legal limbo, and its future in Mali appears increasingly uncertain.
Barrick CEO Mark Bristow, known for his hands-on leadership style and extensive experience in Africa, has yet to issue a personal statement since the Monday ruling. However, sources close to the company say he is mobilizing diplomatic channels to find a negotiated resolution.
“Bristow has always prided himself on his ability to navigate Africa’s political complexities,” said one mining executive familiar with the situation. “But this may be his toughest challenge yet.”
Outlook for Mali’s Mining Sector
As the legal battle drags on, Mali faces the risk of disinvestment in a sector that has been a cornerstone of its economy. Analysts say the combination of military rule, legal uncertainty, and security threats makes it one of the most difficult environments in the world for resource investors.
Meanwhile, citizens and local communities dependent on jobs and revenues from the Loulo-Gounkoto mine are beginning to feel the pinch of the shutdown.
“We hope both sides can find a solution quickly,” said Moussa Coulibaly, a local leader in the Loulo region. “Our people need work. Our children need schools. This mine feeds many mouths.”
Whether through arbitration, diplomacy, or renewed confrontation, the fate of one of Africa’s most productive gold mines now hangs in the balance—and with it, the economic future of a nation struggling to redefine its place in the global mining map.
