Earlier this month, soldiers descended by helicopter into a sprawling mining complex in western Mali, seizing three tonnes of gold—an operation ordered by the country’s military government. The dramatic confiscation at the Loulo-Gounkoto complex, primarily owned by a Canadian firm, marks a striking escalation in the ongoing battle between Sahel-region juntas and Western mining companies.
The military regimes in Mali, Burkina Faso, and Niger, which seized power in recent years, have been increasing pressure on foreign firms, pledging to reclaim sovereignty and ensure a more equitable distribution of profits from the region’s rich mining sector.
Following weeks of mounting tension with Canadian mining giantThe juntas, having distanced themselves from former colonial power France and the regional bloc ECOWAS, must secure financial resources to sustain their fight against jihadist groups and address the region’s overlapping crises., Malian authorities executed an order in mid-January to seize gold reserves at Loulo-Gounkoto—one of the world’s most significant gold-producing sites.
Barrick Gold holds an 80 percent stake in the complex, while Mali owns the remaining portion.
Soldiers arrived unexpectedly by helicopter, “confiscated the phones of those who tried to film them,” according to a miner who spoke to AFP under anonymity due to the sensitivity of the situation.
The only images of the operation were captured and shared covertly.
“When I came back up from the mine, my colleagues showed me a photo of two helicopters about to take the gold to a bank in Bamako,” he said.
Market estimates value the seized gold between $260 million and $290 million—an enormous sum for one of the world’s poorest nations.
Malian authorities are demanding hundreds of millions of dollars in back payments from Barrick Gold. In November, they detained four of the company’s Malian employees.
That same month, they arrested the CEO and two employees of Australian firm Resolute Mining but later released them after the company agreed to a $160 million settlement.
Other mining companies, including Canada’s Allied Gold, B2Gold, and Robex, have previously renegotiated their contracts and settled tax and customs disputes with Malian authorities.
Forcing Negotiations
Sahel’s military leaders insist they are reclaiming control over natural resources, arguing that foreign operators have long benefited from unfair contracts.
Gold mining contributes a quarter of Mali’s national budget.
In Burkina Faso, it accounts for approximately 14 percent of state revenue, according to official figures.
The juntas, having distanced themselves from former colonial power France and the regional bloc ECOWAS, must secure financial resources to sustain their fight against jihadist groups and address the region’s overlapping crises.
At the end of last year, Niger’s military government took control of French nuclear company Orano’s uranium mining unit after revoking its license.
Niger ranks as the world’s seventh-largest uranium producer, supplying 4.7 percent of global demand.
In 2023, Burkina Faso’s junta invoked “public necessity” to requisition 200 kilograms of gold from a subsidiary of Canada’s Endeavour Mining.
Ahamadou Mohamed Maiga, head of an extractive industries consultancy, praised the juntas’ moves to challenge “grossly unfair contracts,” which he claimed facilitate tax evasion.
“What is more violent? Dealing with contracts that corner us or seizing a stock of gold because we want to force negotiations?” asked Malian mining engineer and consultant Oumar Baba Sy.
A Changing Landscape
Since taking power, the region’s military leaders have restructured mining regulations.
Mali’s economy minister, Alousseni Sanou, stated in December that renegotiating mining contracts had freed up more than 700 billion CFA francs (over $1 billion).
He projected that these reforms would yield “a net additional gain of around 600 billion CFA francs” ($950 million) per year—roughly 20 percent of Mali’s national budget.
Mali’s junta chief, General Assimi Goïta, said in January that the newly secured revenues had helped repay parts of “internal and external debt and fund military equipment.”
Nina Wilén, Africa director at the Egmont Institute, noted that Sahel’s military rulers are capitalizing on nationalist rhetoric to bolster public support, framing their actions as a defense of sovereignty while distancing themselves from Western partners.
However, she warned that such measures risk driving away foreign investors.
Mining engineer Sy downplayed those concerns, citing interest from emerging global players such as China, Russia, and Turkey.
“The current pressure on foreign firms will have a short-term impact,” he said, adding that “new private partners are arriving from everywhere” as global demand for strategic minerals rises.
“Nobody has a monopoly,” he said.
“If you don’t want to invest in these countries, others will.”
