Mali's Military Government Seizes Three Tonnes of Gold from Barrick Amid Revenue Dispute

The military government in Mali has begun confiscating gold from the Canadian mining firm Barrick. This action is part of a legal conflict concerning revenue shares owed to the West African nation, as revealed in an internal letter from Barrick. The letter, addressed to the Malian Mining Minister by CEO Mark Bristow, mentions awaiting confirmation of receipt by the Malian Solidarity Bank.

Earlier this month, Mali's senior investigating judge, Boubacar Moussa Diarra, warned Barrick about the impending seizure of three tonnes of gold. On Monday, a senior manager at Barrick confirmed that the military government had seized these three tonnes and moved them to Bamako, Mali's capital. The manager requested anonymity due to a lack of authorisation to speak publicly.

Gold Seizure and Revenue Dispute

The gold was extracted from a mine near Kayes in western Mali and transported to Bamako by plane and truck late Saturday. The Malian authorities have not yet commented on the situation. The seized gold is valued at approximately USD 180 million and is central to the ongoing dispute over revenue owed to the state.

In December, Mali issued an arrest warrant for Barrick's CEO, Mark Bristow, on money laundering charges without providing evidence. Additionally, they ordered the seizure of Barrick's gold reserves. In response, Barrick has proposed a payment of USD 370 million to resolve the issue.

Pressure on Foreign Mining Companies

Mali's military government previously detained four senior executives from Barrick as part of this dispute. These executives remain in custody. The country is one of Africa's top gold producers but faces challenges like jihadi violence and widespread poverty and hunger. Since taking power in 2020, the military government has increased pressure on foreign mining companies to boost revenues.

In November, similar actions were taken against Australian company Resolute Mining. Its CEO and two employees were arrested in Bamako but released after Resolute paid USD 80 million to settle a tax dispute with Malian authorities. They also committed to paying an additional USD 80 million in the coming months.

Mali's actions reflect its efforts to secure more revenue from foreign entities operating within its borders. As these disputes continue, they highlight the complex relationship between foreign companies and host nations seeking economic stability.