Mali’s ruling junta has started seizing gold reserves from the Loulo-Gounkoto mine, operated by Canadian company Barrick Gold, according to a security source and an internal company memo obtained by AFP on Monday.
Since taking power in a 2020 coup, Mali’s military leaders have pledged to ensure a more equitable distribution of wealth from the nation’s mining industry and have recently increased pressure on foreign firms.
The Loulo-Gounkoto mine, located in western Mali, is one of the world’s largest gold complexes. However, the site has been the subject of a dispute between Barrick Gold and Malian authorities, who began enforcing an order to seize gold stock there on Saturday.
In a note to local staff seen by AFP, Barrick Gold confirmed the provisional order and reported that a helicopter was sent by authorities to execute the seizure. While the exact amount and value of the gold seized remain unclear, shipments from the site have been blocked for over seven weeks.
The Canadian firm, which owns an 80% stake in the mine, with Mali holding the remaining 20%, has warned of potential disruptions. Last Monday, Barrick stated it might have to temporarily halt operations at Loulo-Gounkoto if the restrictions imposed by the junta were not lifted within the week.
The company reiterated this possibility in its internal communication, citing ongoing challenges.
Adding to tensions, four Malian employees of Barrick Gold were arrested in late November, while national arrest warrants were issued in December for the company’s South African CEO and the Malian managing director of Loulo-Gounkoto on charges of “money laundering.”
Despite being a leading gold producer in Africa, Mali remains one of the world’s poorest nations. The country contributes 25% of its national budget, 75% of export earnings, and 10% of its economic output to gold mining.
However, Mali faces compounded crises, including political instability, economic challenges, and ongoing security threats. Since 2012, it has been grappling with jihadist insurgencies linked to Al-Qaeda and the Islamic State, as well as a separatist rebellion in the north.
