In Mali, a large foreign group in gold mining announces that it is facing the wall.
Indeed, the Canadian company Barrick Gold, owner of the largest gold mine in Mali, Loulo-Gounkoto, indicated this Monday, December 16, 2024, a possible blocking of its exports by the authorities by the country’s authorities.
As a reminder, the conflict between the two actors has been brewing for several months.
It is rooted in an audit revealing a considerable shortfall for the Malian state, estimated between 300 and 600 billion CFA francs.
Faced with these conclusions, the government is demanding a reimbursement of approximately $500 million from Barrick Gold, an amount that the company vigorously disputes.
Tension reached its peak with the incarceration of four Malian Barrick executives in November, followed by the issuance of an arrest warrant against Mark Bristow, CEO of the group.
The company denounces “unfounded accusations” and “Unfounded tax and customs claims”while warning of a possible suspension of its operations if the blockage of exports continues.
This situation contrasts sharply with the attitude of other major players in the sector. B2Gold, Allied Gold and Resolute Mining have already agreed to collectively pay more than $200 million to the Malian state, while complying with the new mining code.
This text significantly strengthens state participation in mining operations and should generate additional annual revenues of 500 billion CFA francs.
The economic stakes are high for Mali. The Loulo-Gounkoto mine, with annual production of around 700,000 ounces of gold in 2023, represents a contribution exceeding a billion dollars to the local economy.
A suspension of operations could therefore seriously impact the country’s economic prospects.
Despite the announcement of an agreement at the end of September, quickly denied by the Malian government which accused Barrick of non-compliance with the commitments made, no solution seems to be emerging.
The renewal of the operating permit planned for 2026 could even be compromised, according to the Malian authorities.
