A Malian court has postponed a critical decision on whether to place Barrick Mining’s (TSX:ABX,NYSE:B) flagship Loulo-Gounkoto gold complex under provisional administration
The move intensifies an already fraught standoff between the Canadian miner and Mali’s military-led government.
The delay, confirmed to Reuters on Monday (June 2) by the court’s registry office and a lawyer involved in the case, follows the Malian government’s formal request on May 8 for the Bamako Commercial Court to appoint an interim administrator to take over daily operations of the gold complex.
The court was originally expected to rule on the matter on Monday, after hearing formal opposition from Barrick’s Malian subsidiaries during a preliminary hearing on May 15.
The dispute centers on Mali’s 2023 mining code, which raised taxes and granted the government a larger stake in mining operations. While the government has since renegotiated terms with other multinational miners, Barrick has resisted transitioning to the new regime, maintaining that its existing agreements remain legally binding.
Loulo-Gounkoto — one of Mali’s largest gold producers — has been inactive since January, when the government seized approximately 3 metric tons of gold, citing alleged unpaid taxes.
Since November 2024, Malian authorities have blocked gold exports from the site, with the standoff escalating amid a gold price surge. Gold has jumped 28.5 percent year-to-date, hitting an all-time high of US$3,500.05 per ounce in April.
Barrick, formerly known as Barrick Gold, has publicly opposed the government’s efforts to take control of its assets, calling the move “without precedent or lawful justification.” In a statement dated May 26, the company said the attempt to install a provisional administrator disregards its rights under Malian law and international agreements.
“There is no basis — either in law or in practice — for the day-to-day operations at Loulo-Gounkoto to be handed over to a court-appointed interim administrator,” Barrick said. “This action undermines the principles of due process and mutual respect that should govern partnerships between sovereign states and long-term investors.”
Tensions have been further inflamed by the detention of four Barrick employees since November 2024, and the issuance of an arrest warrant for Chief Executive Mark Bristow in December of the same year.
According to a court document, the charges include money laundering and financing of terrorism. Barrick has rejected the accusations, but has not elaborated on their specifics.
Despite the suspension of mining activities, Barrick says it continues to support its workforce, paying wages and maintaining operations on a monthly basis. The company has reiterated that it remains open to resuming talks with the government to secure the release of its detained employees and restart operations.
In its May 26 release, Barrick notes that in a recent letter to Mali’s minister of economy and finances, the company emphasized its “availability to resume discussions on the terms of a satisfactory agreement,” which would allow for a resolution that serves the interests of employees, the state and all stakeholders.
Mali, Africa’s third largest gold producer, relies heavily on mining for export earnings and revenue. Barrick, which has operated in Mali for nearly 30 years, has initiated international arbitration under the terms of its mining conventions.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.