Mali Escalates Dispute with Barrick Gold, Shuts Bamako Office Over Tax Row

Key Developments:

• 🚪 Office Closure: Malian authorities shuttered Barrick’s Bamako HQ, accusing the miner of unpaid taxes.
• ⛏️ Mine Suspension Threat: Government warned of placing Loulo-Gounkoto (suspended since January) under provisional administration unless taxes are settled.
• 💸 Stalled Deal: Barrick claims it signed a February 2024 agreement to resolve the dispute, but Mali has not ratified it, blaming “a small group obstructing progress.”

Why It Matters:

1. Mining Code Clash:
   • Mali’s 2023 mining code demands a larger state share of gold revenues, straining relations with foreign miners.
   • Loulo-Gounkoto, one of Africa’s top gold mines, produced 680K oz in 2023 (15% of Barrick’s output).
2. Economic Fallout:
   • Mali blocked Barrick’s gold exports since November 2023 and seized 3 tons of gold stocks in January.
   • 100+ Malian employees face relocation to Barrick’s Kibali mine (DRC), signaling a prolonged shutdown.
3. Investor Warning:
   • The standoff echoes similar disputes in Tanzania and Zambia, raising red flags for mining FDI in Africa.

What’s Next?

• Negotiation Deadline: Sources hint at a potential resolution next week, but trust is frayed.
• Production Impact: If Loulo-Gounkoto stays closed, Barrick’s 2024 gold output guidance may need revision.
• Geopolitical Risk: Mali’s junta is flexing sovereignty, but long-term revenue losses could backfire.