Mali’s military government has seized over $117 million worth of gold from Barrick’s (TSX: ABX)(NYSE: B) Loulo-Gounkoto mine, days after junta leader Colonel Assimi Goïta signed a law allowing himself to stay in power indefinitely.
The seizure took place when state helicopters landed unannounced at the site and removed roughly 35,000 oz. of gold or slightly over one metric tonne. One metric tonne of gold is worth about $106.4 million on Friday, with gold trading at around $3,349 per oz.
Barrick said on Friday the metal was likely taken for sale by the provisional administrator appointed to oversee the mine. Details remain unclear and the situation is still unfolding, it said in a specially created section of the company’s website.
This is the latest escalation in a bitter dispute between the Canadian mining giant and Mali’s ruling junta, which has controlled the country since a 2021 coup — Goïta’s second in under a year.
The seizure follows a June court ruling that placed Loulo-Gounkoto, one of the world’s largest gold operations, under the control of a government-appointed official for six months. Barrick says it has yet to be formally told who the administrator is but has been informed that Samba Touré, a former employee involved in Mali’s controversial mining audit, is advising the government.
Mining at the site has been suspended since January, when authorities initially seized three tonnes of gold and blocked export authorizations. In response, Barrick initiated international arbitration through the International Centre for Settlement of Investment Disputes (ICSID), which is now underway.
“I want to reaffirm Barrick’s commitment to Mali, even as we navigate extraordinary and unprecedented challenges,” chief executive Mark Bristow said on Friday. “While we continue to engage constructively with the government of Mali, the ICSID process provides the legal certainty and international oversight necessary to resolve this dispute definitively”.
Unprecedented challenges
Despite the deepening conflict, Bristow reiterated the company’s commitment to Mali. “We are navigating extraordinary and unprecedented challenges,” he said. “But our position is legally sound, and we remain confident in our ultimate success. We continue to work toward a resolution that serves all stakeholders.”
The gold seizure coincided with the junta’s latest political move: a law granting Goïta an indefinite mandate “until the country is pacified,” according to France24.
