Canada’s Barrick Gold, the world’s second largest gold miner, has come up against a very determined case of a country exerting its national sovereignty, as the government of Mali seized some $245 million in gold stocks at Barrick’s Loulo-Gounkoto mine. The Malian government has accused Barrack of owing the country $5.5 billion in royalties. Last year they put under arrest four of the mining company’s executives and issued an arrest warrant for Barrick CEO Mark Bristow.
Following the Malian government enforcing a provisional order to seize gold stocks on Jan. 11, Barrick announced it has temporarily suspended operations at Loulo-Gounkoto, in a statement on the corporate website.
Mali, which is the third largest gold producer in Africa, has issued new mining rules as it seeks a larger share of revenues from foreign miners. The Loulo-Gounkoto site holds approximately 4 metric tons of gold, valued at nearly $380 million, according to internal estimates, and accounts for about 14% of Barrick’s expected gold output for 2025, and reduces its earnings by 11%. Barrick’s stock fell by 1.8% on Jan. 13 on release of the news.
