Mali’s government has shut down Barrick Gold’s (TSX:ABX,NYSE:GOLD) office in the capital, Bamako, as part of an escalating dispute over alleged non-payment of taxes, sources familiar with the matter confirmed to Reuters.
The closure marks a significant development in a long-running standoff between the Canadian mining giant and the West African country, which has seen tensions rise over mining revenues and the implementation of Mali’s new mining code.
The latest development, which saw staff in Bamako locked out of the company’s offices, is linked to a separate tax dispute that has been brewing since 2023.
Barrick signed an agreement with Mali’s government in February to end the nearly two-year-long conflict. This agreement, however, still awaits official approval from Malian authorities.
One source close to the situation noted that the closure of Barrick’s Bamako office did not affect Barrick’s Loulo-Gounkoto mining complex, located in the western part of Mali.
Barrick suspended operations at Loulo-Gounkoto after the Malian government seized around 3 metric tons of gold in January, as the government accused the company of failing to meet its tax obligations.
This move was part of an ongoing battle between Barrick and the Malian government, which has been blocking the company’s gold exports since November 2024.
The company released a statement addressing the office closure, and stated that the Malian government is also ‘threatening to place the Loulo-Gounkoto mine under provisional administration unless the mine was reopened and tax payments were made.’
The company said is prepared to honor the agreement and restart production once the government finalizes it. ‘Its conclusion now appears to be obstructed by a small group of individuals placing personal or political interests above the long-term interests of Mali and its people,’ Barrick wrote in the release.
Barrick has transferred nearly 40 Malian staff members from the Loulo-Gounkoto mine to the company’s Kibali mine in the Democratic Republic of Congo, with plans to transfer up to 100 employees.
This move suggests that the resumption of operations at Loulo-Gounkoto may not happen in the immediate future, leaving a cloud of uncertainty hanging over the mine’s future.
The closure of Barrick’s Bamako office is only the latest chapter in the tense relationship between the mining giant and the military-led government in Mali, which took power following coups in 2020 and 2021.
Since then, Mali has taken a more assertive stance in its dealings with foreign companies, especially in the mining sector, and the country is one of Africa’s leading producers of gold.
The suspension of operations at the Loulo-Gounkoto complex, which produces a significant portion of Mali’s gold, has raised concerns about the country’s future output.
Mali’s mines ministry has already forecast a slight recovery in industrial gold output in 2025, with an expected rise to 54.7 metric tons of gold from the 51.7 metric tons produced in 2024. However, the ministry included Loulo-Gounkoto production in its calculations.
In February, Barrick’s CEO, Mark Bristow, said that the company’s operations would be able to resume once it could export its gold again. However, in its annual report released in mid-March, Barrick acknowledged that the timeline for a resolution remained uncertain, and as such did not include the mine in its production guidance for 2025.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
