The standoff in Mali, coupled with threats by Burkina Faso’s military junta to revoke mining permits and the seizure of a French-operated uranium site in Niger, has raised concerns among Western mining companies.
- Barrick Gold may halt operations in Mali due to restrictions on gold shipments.
- Threats by Burkina Faso’s military junta and the seizure of a French-operated uranium site in Niger have raised concerns among Western mining companies.
- Mali’s government is pushing mining companies to renegotiate contracts and increase the state’s share of mining profits.
Canada’s Barrick Gold has announced that it may halt operations in Mali if restrictions on gold shipments are not lifted within a week.
This standoff in Mali, coupled with threats by Burkina Faso’s military junta to revoke mining permits and the seizure of a French-operated uranium site in Niger, has raised concerns among Western mining companies, Reuters reported.
Industry insiders warn that these developments could deter future investments in West Africa, a region crucial for mining ventures.
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Mali’s junta has been pushing mining companies to renegotiate their contracts, following the introduction of laws that boost the state’s share of mining profits. The government has even cautioned Barrick Gold Corp. that it might reclaim the Loulo mine permit when it expires in 2026.
Barrick Gold is embroiled in a dispute with the government over its Loulo-Gounkoto mining complex, which contributes approximately 14% of Barrick’s projected 2025 gold output.
The Malian government has issued restrictions on gold shipments and an interim confiscation order on Loulo-Gounkoto’s existing gold stock, reportedly amounting to around 4 metric tons.
These restrictions have significantly disrupted operations. Barrick warned that, unless resolved within the week, it would suspend operations at Loulo-Gounkoto.
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This potential suspension, already causing preparations at the site, could reduce Barrick’s earnings by 11% in 2025, according to analysts. The standoff also includes allegations of employee detentions and blocked bullion shipments.
Mali, Africa’s second-largest gold producer in 2023 and 11th globally, has a 20% stake in the Loulo-Gounkoto mine, with Barrick holding the remaining 80%.
