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yesterday

Mali Court Orders Provisional Administration of Barrick Gold’s Loulo-Gounkoto Mine

The six-month takeover spotlights the junta’s push for higher mining revenues as Barrick moves ahead with ICSID arbitration.

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FILE PHOTO: FILE PHOTO: A small toy figure and gold imitation are seen in front of the Barrick logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo/File Photo
Mali's military junta has tightened regulations on the mining sector, which is key to the economy
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Overview

  • A Bamako commercial court ruled that the Loulo-Gounkoto mine be placed under provisional administration for six months and appointed Zoumana Makadji to manage operations within 15 days.
  • Malian authorities accuse Barrick of failing to pay at least $417 million in taxes and royalties and of excluding the state from effective revenue management under existing contracts.
  • Barrick maintains legal ownership of the site and has submitted a request for provisional measures to the International Centre for Settlement of Investment Disputes.
  • The dispute has involved arrest warrants for CEO Mark Bristow, detention of local employees and a suspension of gold exports.
  • Loulo-Gounkoto, 80 percent owned by Barrick, contributes roughly 15 percent of the company’s African output and is a major source of revenue for Mali’s military-led government.