A Malian court has postponed until June 2 a pivotal hearing to decide whether Barrick Gold’s Loulo-Gounkoto mine—one of Africa’s largest gold operations—will be placed under state control, prolonging a bitter $10 billion tax dispute that has frozen production since January and seen Barrick employees arrested.
Why the Hearing Matters
⚖️ Government’s Demand: Mali seeks to appoint a provisional administrator to restart the mine, accusing Barrick of unpaid taxes—a claim the company denies.
💰 $10B Stakes: The conflict stems from Mali’s new mining law, which has forced renegotiations with all foreign miners. Barrick alone refuses to comply.
⛏️ Operations Frozen: The mine (contributing 5% of Mali’s GDP) has been shuttered since January, with assets seized and staff detained.
Broader Context
🌍 Mali’s Hardline Stance: The junta-led government has rewritten mining codes and strong-armed companies like Resolute Mining and Allied Gold into new deals.
📉 Investor Alarm: The delays signal rising resource nationalism, spooking miners already wary of Mali’s political instability and military rule.
What’s Next?
- June 2 Hearing: A ruling could transfer mine control to the state or force Barrick to negotiate.
- Barrick’s Options: The miner may sue internationally or cut losses in Mali (like B2Gold did in 2023).
- Market Impact: Loulo-Gounkoto produces 600K+ oz/year—prolonged closure risks gold supply tightness.