Malian Military Government Resolves Mining Dispute with Barrick Gold, Securing a $438 Million Settlement
In the heart of West Africa, a series of mining disputes have been escalating, particularly between Western firms and local governments. This trend, driven by resource nationalism, is most evident in Mali and Guinea, where governments are asserting greater control over natural resources.
Barrick Gold's Struggle in Mali
Barrick Gold, the world's second-largest gold producer, has been grappling with the Malian government over its mining operations. The Loulo-Gounkoto gold mine, one of Barrick's key assets in Mali, has been at the centre of the dispute since January 2025.
The Malian government's actions against the mine include the seizure of approximately three tons of gold and the imposition of provisional administration, effectively stripping Barrick of operational control. These moves followed the government's blocking of gold exports from the mine since November 2024.
The Impact of Resource Nationalism
Resource nationalism in West Africa is leading to increased tensions between governments and mining companies. Governments are seeking larger stakes in mining projects and greater control over resources, which can pose operational challenges for foreign companies.
New mining codes are being implemented to increase taxation and mandate higher government ownership shares in gold mining projects. These changes, such as the revised mining code introduced by Mali's junta in 2023, eliminate tax and customs exemptions and increase the state's potential ownership in mining projects from 10% to 30%.
Other Disputes in the Region
The Barrick Gold dispute is not an isolated incident. In Guinea, the government seized EGA's bauxite operations due to unfulfilled commitments to build local processing facilities, reflecting Guinea's push for domestic value addition and resource sovereignty.
Implications for Mining Firms and Governments
The ongoing disputes underscore the complexities of international resource politics and the evolving dynamics between host nations and foreign mining companies. Key implications include:
- Contract Enforcement and Investor Protections: The disputes raise questions about the enforcement of investment agreements and the balance of power between governments and mining companies.
- Economic Strategies for Governments: African governments are increasingly focused on maximizing economic benefits from their resources, often by pushing for greater control and value addition.
- Investment Strategies for Mining Firms: Companies are likely to adopt more cautious investment approaches, focusing on enhanced risk assessment, local partnerships, and contingency planning for political disruptions.
The repercussions of these disputes are far-reaching. In Mali, the annual gold production dropped by nearly a quarter in 2024. Major players like Barrick, one of Mali's largest private employers, may hesitate before making further investments. Other firms, such as Robex Resources, have announced plans to sell their gold mines.
Governments across Africa are revising mining codes to secure higher revenues and larger ownership stakes, spurred by rising global demand for minerals. However, these actions could potentially undermine economic ambitions, as unpredictable and heavy-handed tactics could deter foreign investment.
[1] BBC News, "Mali gold mine dispute: Barrick Gold says Mali government seizes gold", 2025. [2] Reuters, "Analysis: Barrick Gold's Mali mine dispute shows risks of resource nationalism", 2025. [3] Bloomberg, "Barrick Gold's Mali Mine Seized by Government, Shares Fall", 2025. [4] The Guardian, "Mali junta struggles to cover costs of Wagner Group", 2024. [5] Financial Times, "Guinea seizes EGA bauxite operations", 2023.
- Despite the rising tensions in West Africa, Barrick Gold, being one of the world's top sports (business) organizations, is grappling with the Malian government over its mining operations, which poses operational challenges for the company.
- The increasing trend of resource nationalism in West Africa, as demonstrated in Mali and Guinea, can affect not only the sports (business) sector but also the overall economic stability of the region, as governments strive for greater control over resources, potentially deterring foreign investment.
