Mali’s military government has seized $245 million worth of gold from Barrick Gold’s Loulo-Gounkoto mine and stored it at the state-owned Banque Malienne de Solidarite (BMS). This move escalates a dispute over revenue sharing, leading Barrick to suspend operations in the country. Giulia Paravicini and Portia Crowe of Reuters report that the suspension threatens over 8,000 jobs and impacts Mali’s economy, which relies heavily on gold exports. They write:
Mali’s military government is holding gold seized from Barrick Gold’s, Loulo-Gounkoto mine site at state-owned Banque Malienne de Solidarite, two sources said, as the miner pursues plans to suspend its operations in the country.
The move escalates an ongoing dispute between Barrick and Malian authorities, who, like fellow military-led governments in neighbouring Niger and Burkina Faso, are demanding a bigger share of revenues from Western miners.
Reuters reported on Monday that Malian officials had seized about three metric tons of gold worth $245 million. Barrick confirmed the seizure on Tuesday and said it had suspended operations in response. […]
Both sides should consider the “dire social consequences of suspending operations, which would jeopardise the prospects of over 8,000 workers and their families,” a mining union group said in a statement last week.
Gold is also Mali’s top foreign currency earner, accounting for more than 80% of total exports in 2023.
