Barrick Gold to suspend operations in Mali
Barrick Gold has announced plans to halt operations in Mali following ongoing obstruction by the government over a new mining code.
Mali’s government has blocked the export of gold from Barrick’s Loulo-Gounkoto complex, a significant economic contributor to the country. The Malian junta’s push to revise the mining code led to disagreements over the division of revenues and economic benefits, with Barrick resisting changes that could undermine previous agreements.
The arrests of Barrick employees and the warrant for CEO Mark Bristow represent an escalation in tensions, potentially damaging Mali’s investment climate. The mining sector is a cornerstone of Mali’s economy, contributing 5%-10% of GDP. Barrick’s Loulo-Gounkoto complex alone injected over $1 billion into the economy last year and employs a predominantly local workforce.
Foreign investment
The current standoff risks eroding investor confidence, which could deter future foreign investment and disrupt Mali’s economic recovery amidst political instability. If the dispute is not resolved and gold shipments remain blocked, Barrick may halt operations at Loulo-Gounkoto. This would significantly impact Mali’s economy, reduce state revenues, and affect local livelihoods.
Both Barrick and the Malian government have incentives to reach a resolution. For Barrick, maintaining operations is crucial for its financial and strategic goals. For Mali, preserving a key economic driver is critical, particularly as the country faces mounting political and financial pressures.
If the situation worsens, diplomatic or regional mediation might be sought to stabilize the industry and secure Mali’s economic future. Mali’s recent coups and ongoing military rule have reshaped governance and policy priorities, including mining reforms. These reforms aim to increase state revenues but have created friction with international operators.
The current situation highlights the broader risks of operating in politically unstable regions, where regulatory unpredictability and government intervention can disrupt business operations. Barrick has emphasized its commitment to Mali, pointing to its significant economic contributions over nearly three decades. CEO Mark Bristow has called for constructive dialogue and adherence to existing agreements, framing the company as a partner in Mali’s development.
