Introduction
Authorities in Mali have shut down the Bamako office of Barrick Gold (NYSE: GOLD) (TSX: ABX), citing unpaid taxes, according to a Reuters report. This move marks the latest escalation in a long-standing dispute between the Canadian mining giant and the Malian government, fueled by the 2023 mining code that increases state ownership in mining projects.
Background of the Dispute
The conflict stems from Mali’s updated mining regulations, which aim to secure greater financial benefits for the state. Since the code’s implementation, tensions have persisted, with Barrick rejecting accusations of wrongdoing. The company has been locked in negotiations with the government, reportedly reaching a settlement in February 2025 that awaits official approval. However, Barrick claims a small group of individuals prioritizing personal or political interests is obstructing the agreement.
Current Developments
Sources told Reuters that Barrick employees are currently barred from accessing the Bamako office. While this closure does not directly impact the Loulo-Gounkoto mine in western Mali, operations there have been halted since mid-January due to separate issues, including the state’s seizure of approximately three tonnes of gold worth $245 million over unrelated tax claims. Barrick CEO Mark Bristow has stated that operations will resume only when gold exports are permitted, and the company has confirmed the seized gold remains its property. Additionally, around 40 Malian employees from Loulo-Gounkoto are being temporarily relocated to Barrick’s Kibali mine in the Democratic Republic of Congo.
Analysis and Perspective
This situation highlights the broader challenges faced by multinational mining companies in resource-rich nations where governments are increasingly assertive in securing economic benefits. While Mali’s push for greater control over its resources is understandable, the abrupt closure of Barrick’s office and the unresolved seizure of gold raise questions about transparency and due process. Could these actions deter foreign investment in Mali’s mining sector? Barrick’s call for 'responsible leadership' suggests frustration, but without a finalized agreement, both sides risk prolonged deadlock, potentially harming Mali’s economy and the livelihoods dependent on mining. A balanced resolution that respects legal frameworks and mutual interests is critical.