Exclusive: Barrick will halt operations in Mali following the seizure of gold

Barrick Gold (ABX.TO), a Canadian mining company, has announced that it will be required to suspend mining operations in Mali as a result of the government’s seizure of gold inventories from the Loulo-Gounkoto complex and their removal by helicopter over the weekend.

According to two sources who spoke with Reuters on Monday, approximately three metric tons of gold were extracted from the mining complex in western Mali on Saturday. One source estimated the value of the gold at $245 million. On Monday, Barrick informed the Malian government that the seizure would necessitate a temporary suspension of mining operations at the Loulo and Gounkoto mines.

Two sources indicate that the confiscated gold will be transported to the state-owned Banque Malienne de Solidarite (BMS) in the capital, Bamako.
Just prior to the close of trading on Monday, Barrick shares on the Toronto stock exchange were down 1.9%.

A single source reported that gold was transported in two distinct air force helicopter cargoes, as reported by eyewitnesses at the mining complex. The second source stated that the seizure was a component of a confiscation order that a magistrate issued last week.

Barrick informed the Malian government in its letter that the gold had been confiscated, which resulted in its lack of insurance coverage. It further stated that it was anticipating conformation that the gold removed from its site had arrived at the Banque Malienne de Solidarite and that the gold it held was insured.

In a separate court order, dated Jan. 2 and also viewed by Reuters on Monday, Judge Boubacar Moussa Diarra ordered the seizure of the stock. He also stated that Mali’s economy ministry claimed the two mines operated by Barrick in the country owed a total of $5.5 billion to the government, a significantly higher figure than previously estimated.

Barrick and the Mali government have been embroiled in a dispute since 2023 regarding a contract that is predicated on the implementation of new mining regulations. The dispute has increased on numerous occasions, culminating in Mali’s detention of senior executives and the issuance of an arrest warrant for Barrick CEO Mark Bristow.

Barrick’s request for arbitration proceedings against Mali was registered by the International Centre for Settlement of Investment Disputes on Friday, according to public documents.

At a time when gold prices have reached record highs, military administrations in Mali, Burkina Faso, and Niger are all attempting to renegotiate terms in order to secure a larger stake in mining revenue.

Requests for comment were not promptly addressed by either Barrick or the Malian authorities.

The sources remained anonymous because they were not authorized to publicly discuss the confidential orders.

Barrick issued a warning to Malian staff on Sunday that the government had initiated the process of seizing the gold and may need to suspend operations at the complex due to the ongoing dispute.

According to Jefferies analysts, the mine’s production suspension could result in an 11% decrease in Barrick’s earnings before interest, tax, and amortization in 2025..

Reuters was informed by sources that Mali had previously requested approximately $500 million in delinquent taxes from Barrick. Any malfeasance by Barrick is denied. According to its quarterly earnings report, the Malian government received $85 million from the company in October.

Last month, Barrick issued a warning regarding the substantial degradation of conditions at Loulo-Gounkoto, which culminated in the detention of employees without justification and the obstruction of bullion shipments. The mining complex is 80% owned by the corporation, with 20% owned by the Mali government.