Tensions Escalate as Mali Seizes $180M Worth of Gold from Canadian Mining Giant Barrick

In a bold move straining international business relations, the military government of Mali has confiscated three tons of gold, valued at approximately $180 million, from Canadian mining corporation Barrick Gold. This action is a part of an ongoing and intensifying legal tussle concerning revenue-sharing agreements with the West African nation.

The seized gold, extracted from Barrick's operations near Kayes, was transported to Mali's capital, Bamako, in a military-led operation. This development was outlined in an internal communication from Barrick CEO Mark Bristow to the Malian Mining Minister. The letter, which was accessed by The Associated Press, indicates that the company is seeking official acknowledgment of the seizure by the Malian Solidarity Bank, a state-run entity.

This latest escalation follows a series of contentious actions by the Malian government. In December, Mali not only issued an arrest warrant against CEO Mark Bristow on allegations of money laundering—charges for which no evidence has been publicly disclosed—but also ordered the seizure of Barrick's gold reserves. The company countered by proposing a settlement of $370 million.

Furthermore, the situation is compounded by the earlier arrests of four senior executives from Barrick, who are still in detention. The Malian military's approach to resolving disputes with foreign mining enterprises has been increasingly aggressive, as evidenced by a similar incident involving Resolute Mining, an Australian company. Resolute’s CEO and two other staff members were arrested and subsequently released after agreeing to a hefty settlement of $160 million over alleged tax issues.

Barrick Gold has not made any official statements regarding the recent developments beyond the contents of the leaked letter. The Malian authorities have also maintained silence over the matter.

The backdrop to these developments is Mali’s ongoing struggle with internal security issues, including jihadi insurgencies, coupled with high poverty and hunger levels. Since a military coup in 2020, the government has been under pressure to stabilize the country’s economy, which may partly explain the heightened scrutiny and demands placed on foreign mining companies, which are key contributors to the national income.

Mali ranks as one of the top gold producers in Africa, and the sector is crucial for the country's economic stability. How this dispute is resolved could signal future conditions for foreign investments in Mali and potentially, West Africa’s mining sector at large.