Mali Launches Legal Action Against Barrick Over Loulo-Gounkoto Gold Mine

On 16 May 2025, during a closed-door session at the Bamako Commercial Court, the Malian State clashed with Barrick Mining (formerly Barrick Gold) over the future of the Loulo-Gounkoto gold complex. The Malian government is now seeking to place the mine under provisional administration amid disputes concerning the application of the August 2023 mining code, allegations of tax under-payment, and the November 2024 seizure of approximately three tonnes of gold.

Context and Stakes

Strategic Importance of Loulo-Gounkoto: Located in the Kayes region, Loulo-Gounkoto stands as one of West Africa’s largest gold deposits. In 2024 alone, the complex produced 723,000 ounces of gold—accounting for nearly 15 percent of Mali’s industrial output. However, following the government’s confiscation of roughly USD 317 million worth of gold last November, mining operations ground to a halt. This contributed to a 23 percent drop in national gold production last year.

Revised Mining Code Impact: The updated mining code increases the state’s free carried interest to 30 percent and imposes higher taxes on profits and exports. While Mali insists on enforcing these provisions to secure a fairer share of the mining revenues, Barrick contends that they should not apply retroactively to its existing contracts.

Judicial Proceedings and Timeline

• Hearing Delays: An initial hearing scheduled for 15 May was postponed until 22 May.
• Government Motion: Mali has filed a motion to appoint a provisional administrator to maintain operations at the mine "in the national interest." This move is aimed at safeguarding government revenue and protecting local jobs.
• Barrick’s Response: Barrick CEO Mark Bristow has denounced the move as a “political escalation,” emphasizing the company’s 30-year presence in Mali and questioning the legality of the gold seizure.

Fiscal Audit and Disputed Arrears

A government audit released earlier this year estimated that mining operators—including Barrick’s main subsidiaries—owe approximately 315 billion FCFA (around €480 million) in unpaid taxes. Recovering these funds is central to Mali’s case, as the State seeks to channel these revenues toward infrastructure and public services. Barrick disputes both the audit’s methodology and the legitimacy of imposing the new fiscal regime on pre-2023 contracts.

Regional Trends

Africa Security Analysis has noted that Mali’s legal action mirrors a broader continental trend. Since 2022, countries such as Tanzania, the DRC, and Zimbabwe have reformed their mining laws to increase state revenue and tighten rules on public-private partnerships. However, transitioning legacy agreements to modern codes raises complex legal issues, including questions of retroactivity, investor protection, and sovereign rights.

Conclusion

Africa Security Analysis, believe that the outcome of the legal proceedings over the Loulo-Gounkoto gold mine will be pivotal in shaping Mali’s resource governance strategy. If the court grants provisional administration, an interim management team will be installed to resume operations, providing the government with a temporary mechanism to assert control over one of its most valuable resources. This could set the stage for further state intervention—potentially as far as partial nationalization or a complete takeover—should Barrick’s influence continue to diminish.

Moreover, the court’s decision will offer a broader indicator of how African governments might renegotiate decades-old resource contracts under modern fiscal regimes while still fostering an attractive investment climate for foreign stakeholders. As countries across Africa update their mining laws to secure a fairer share of mining revenues, this case may establish important legal and strategic precedents, balancing sovereign rights with investor protections.

Ultimately, the verdict on Loulo-Gounkoto will not only affect Mali’s immediate fiscal landscape and industrial output but will also serve as a bellwether for how resource-rich nations across the continent could address similar challenges in the coming years.