Malian Military Government Settles Mining Dispute with Barrick Gold for $438 Million
Resource Nationalism in Mali: Western Mining Companies Face Challenges
Mali's military-led government, under Colonel Assimi Goïta, has implemented a 2025 mining code that requires up to 35% state ownership in mining projects and mandates significant local ownership and employment participation [1][2][3]. This shift in policy has led to a wave of resource nationalism, with Western mining companies facing operational suspensions, asset seizures, and legal disputes.
One of the most high-profile cases involves Canadian mining giant Barrick Gold, the world's second-largest gold producer. Barrick's Loulo-Gounkoto gold complex was placed under state control in mid-2025 after disputes over taxes and the revised mining code, leading Barrick to file arbitration at the International Centre for Settlement of Investment Disputes (ICSID) [2][4]. The company's CEO, Mark Bristow, has been involved in disputes with African governments, including Tanzania and Congo [5].
The government's new laws require local subcontractors and suppliers to have 35% Malian ownership, impacting the entire supply chain and operational strategies of Western firms [3]. For instance, the government took a 35% stake in the Kodal Bougouni lithium project, signaling cross-mineral nationalization beyond gold [3].
The impact on Western mining firms includes reduced equity stakes and control over mining operations, legal and financial challenges, interruptions in gold exports, and heightened operational risk [1][4]. Barrick Gold, for example, had to pay $438 million to resolve a nearly two-year dispute over unpaid dues and environmental violations [6]. The company also faced a $1.04 billion write-down due to the Malian situation [4].
However, both governments and mining companies have strong reasons to maintain cooperation. Despite ongoing tensions, annual gold production dropped by nearly a quarter in 2024, highlighting the mutual dependence between the two parties [7]. Local business owners in Bamako are expressing frustration over rising tax burdens, and the Malian government introduced new taxes on phone calls and mobile-money transactions this month [8].
The regional trend of military governments asserting resource sovereignty through legislative and sometimes unilateral measures against foreign mining interests is not limited to Mali. Niger's government, for instance, revoked the mining license of Orano, a French state-owned nuclear fuel company, and blocked uranium exports [9].
As governments across Africa revise mining codes to secure higher revenues and larger ownership stakes, spurred by rising global demand for minerals, the operating environment for Western mining firms remains challenging [10]. Yet, negotiations are ongoing, with Barrick Gold's CEO, Mark Bristow, open to discussions but rejecting any demands that threaten the economic viability of its operations in Mali [5]. The Malian government will also return hundreds of millions of dollars' worth of gold ore that it had been seizing [3].
References:
- BBC News
- Reuters
- Mining Weekly
- Bloomberg
- Bloomberg
- Bloomberg
- Reuters
- Reuters
- Reuters
- Mining Weekly
- The new mining code in Mali, requiring up to 35% state ownership in mining projects, has made the operating environment for Western sports organizations challenging, given the increasing resource nationalism.
- Despite the ongoing disputes and operational suspensions, Western sports companies, such as Barrick Gold, are open to negotiations with the Malian government, seeking to maintain a viable presence in the mineral-rich nation.
