A court in Mali has ruled that the operations of the Loulo-Gounkoto gold complex, run by Canadian mining giant Barrick, will be overseen by a government-appointed administrator for six months, effectively removing the firm from day-to-day management of one of the world’s major gold mining sites.
The ruling permits Mali’s military-led government to install a temporary administrator, Zoumana Makadji, in charge of the site amid escalating tensions between the junta and the Toronto-based company over issues of taxation and profit-sharing.
This is the first instance in which Malian authorities have placed a mining company under such provisional control. According to a magistrate at Bamako’s commercial court, Makadji’s role will be to ensure operations resume promptly. A judicial review is expected after six months to evaluate progress in resolving the dispute or forming a new agreement with Barrick.
Mali’s military government, which has increasingly asserted control over the mining sector, accuses Barrick of failing to adequately pay taxes, royalties, and dividends. Officials also allege that the firm’s current contract fails to reflect the country’s “legitimate interests” and leaves the state sidelined from key financial and operational decisions.
A source aligned with the government told AFP that placing the mine under legal administration was part of the state’s strategy to reclaim oversight in line with recently introduced mining reforms, which boost the government’s share in sector profits.
Although Barrick retains legal ownership of 80% of the complex—while the Malian state holds the remaining 20%—operational control now rests with the external administrator. In response, the company confirmed it has initiated arbitration proceedings through the International Centre for Settlement of Investment Disputes (ICSID), a World Bank body. Barrick also said it had submitted an application for provisional measures aimed at protecting its legal rights under existing mining agreements with Mali.
The ruling follows months of growing friction between the two sides. In November, Malian authorities detained four of Barrick’s local employees. Arrest warrants were later issued in December for Barrick’s South African CEO and the complex’s Malian general manager on charges of alleged money laundering.
In January, operations at the Loulo-Gounkoto site were suspended after authorities seized three tonnes of gold from the mine. The following month, the government ordered the closure of Barrick’s offices in Bamako, citing non-payment of taxes amounting to several hundred million dollars.
The government’s request to place the site under administration was formally submitted to the court on 8 May.
Barrick maintains it has acted in good faith, stating that it paid $85 million to the Malian government last October as part of ongoing efforts to resolve all outstanding issues.
Situated near the border with Senegal, Loulo-Gounkoto has been a cornerstone of Mali’s gold production since its inception 20 years ago. Underground extraction began in 2011. In 2023, the mine reportedly contributed around $1 billion to the national economy, according to Mining Technology.
Mali is currently ruled by a military junta that came to power through coups in 2020 and 2021.
