Mali to Sell Over $100 Million in Seized Barrick Gold Assets Amid Ongoing Dispute Over Mining Sovereignty
Mali’s transitional government has authorized the sale of one metric ton of gold—valued at approximately $107 million—that was previously seized from the Loulo-Gounkoto mining complex operated by Canadian mining giant Barrick Gold.
The move, executed by a state-appointed administrator, is aimed at covering urgent operational expenses including government salaries, fuel costs, and unpaid contractor invoices. However, Barrick Gold has publicly denounced the sale as illegitimate, deepening tensions between the Malian state and foreign investors in the country’s critical mining sector.
According to sources cited by Reuters, the decision to liquidate the seized gold was part of Mali’s broader strategy to reassert control over the Loulo-Gounkoto site, which had remained idle for nearly six months following a breakdown in relations between the company and the government.
“If it is true, any plans by the administrator to restart operations and sell gold on the site, in our view, would be illegitimate,” said Barrick CEO Mark Bristow. “We will use every legal measure at our disposal to hold the state and the individuals involved accountable for these unlawful actions.”
Barrick confirmed it had only received informal reports about the site’s reopening and the gold sale and stated it was pursuing a resolution through legal and diplomatic channels.
The Loulo-Gounkoto complex is one of Mali’s most productive gold mines and serves as a vital source of national export revenue. Operated by Barrick’s local subsidiary, the mine previously contributed roughly 15% of the company’s global gold output and provided hundreds of jobs in Mali’s southwestern region.
Barrick halted operations at the site in January 2025 after the Malian government forcibly seized gold inventories during an escalating dispute over resource control, tax obligations, and regulatory compliance.
Rising Resource Nationalism
Mali, currently governed by a military-led transitional authority, has in recent years intensified efforts to assert sovereignty over its mineral wealth. Key measures have included:
- Amendments to the national mining code,
- Efforts to increase state ownership in extractive projects,
- And delays in license renewals for foreign operators.
Officials have framed these changes as necessary to maximize domestic benefit from natural resources. However, international mining firms and analysts warn the moves are creating a climate of uncertainty, deterring investment at a time when Mali’s economy faces inflation, currency instability, and growing fiscal deficits.
The forced sale of seized gold has sparked alarm among foreign investors, many of whom now view Mali as a high-risk jurisdiction for capital-intensive projects. Legal experts say the situation could lead to international arbitration if Mali is found in breach of investment protection agreements.
“This is not just a contractual dispute—it’s a signal to the global investment community,” said an Africa-focused extractives analyst based in London. “If resource nationalism continues to outweigh legal agreements and diplomatic engagement, Mali risks isolating itself economically.”
A Tense Road Ahead
While the government seeks to address short-term financial strains, observers note that undermining established mining contracts could have long-term consequences for Mali’s growth prospects. Gold accounts for nearly 75% of Mali’s total export earnings, and maintaining operational continuity is crucial for both public finances and employment.
The dispute with Barrick is the latest chapter in an unfolding narrative about the balance between resource sovereignty and international cooperation in West Africa’s mining sector.
As legal challenges mount and diplomatic efforts intensify, the fate of the Loulo-Gounkoto complex—and the future of foreign mining in Mali—hangs in the balance.
