Barrick Gold’s showdown with Mali’s military government has triggered mass layoffs at its Loulo-Gounkoto gold complex, with subcontractors cutting hundreds of jobs after months of unpaid work and frozen operations. The cuts mark a sharp escalation in a two-year dispute that has halted production at Africa’s largest gold mine and strained relations between the Canadian miner and the coup-hit nation.
Layoffs in Motion
- Boart Longyear (BLY Mali): Liquidating after losing its Barrick contract; 98 jobs gone.
- ETASI: Suspending all 68 employees due to payment delays.
- ATC: Metal construction firm slashed staff from 45 to 4; layoffs formalized this week.
- MAXAM: Explosives supplier prepping temporary stoppage for ~120 workers (rotational staff).
- SGS: Granted a 3-month work suspension (expiring soon); fate unclear.
Dispute Backdrop
- Gold Seizure: Mali’s government confiscated 3 tons of bullion in January, accusing Barrick of tax evasion.
- Export Blockade: Bamako halted Barrick’s gold shipments since November 2023, citing unpaid dues under a new mining code.
- Office Shutdown: Authorities shuttered Barrick’s Bamako HQ last week in a dramatic escalation.
Human Toll
- Barrick’s Salaries Intact: Direct employees still paid, but 100 Malian staff face transfer to Congo’s Kibali mine.
- Contractor Crisis: Subcontractors say Barrick stopped payments months ago, forcing layoffs.
Stalemate Continues
- Failed Deal: Barrick signed a February agreement to resolve the dispute, but Mali hasn’t ratified it.
- Government Demands: Insists on stricter tax compliance and local benefits under its 2023 mining code.
Why It Matters
- Gold Supply: Loulo-Gounkoto produced 683K oz in 2023—6% of Barrick’s output. Prolonged shutdown risks global supply.
- Investor Warning: Mali’s hardline stance may deter other miners; gold contributes 10% of Mali’s GDP.
- Regional Risk: Similar disputes loom in DRC and Burkina Faso, where governments are rewriting resource rules.
What’s Next?
- Deadline Watch: SGS’s suspension expiry next week could trigger more cuts.
- Diplomatic Push: Barrick may need high-level mediation to unlock exports.
- Legal Fallout: Potential arbitration if Mali rejects the February deal.
Key Quotes:
- Boart Longyear’s Letter: “BLY Mali is in an irremediably compromised situation.”
- Industry Source: “This is a warning shot to all miners in the Sahel—governments want more control.”
Data Point: Mali’s gold exports totaled $4.8B in 2023, but 90% of revenue flowed to foreign firms.
Barrick Gold Contractors Axe Hundreds of Jobs in Mali as Tax Dispute Escalates