Canada’s Barrick Gold Corp (ABX.TO) has said it would suspend operations in Mali if a ban on gold shipments is not lifted next week; sources told Reuters it faces a similar decision.
Industry insiders say Barrick’s strikes in Mali, along with threats from the Burkina Faso government to revoke mining licences and seize French-owned uranium in Niger, have soured workers on the West and could limit further trade in West Africa.
Military governments in Mali, Burkina Faso and Niger have sought to renegotiate terms for a larger share of mining revenues after protests alienated them from their backers in France, the United States and the United Nations.
Barrick, whose Loulo-Gounkoto mining complex in Mali accounts for 14% of its gold projects through 2025, has been in a dispute with the country’s government over a contract under new mining laws since 2023. In March, Barrick issued a warrant for the arrest of Barrick Executive Mark Bristow.
The World Gold Association says Mali will be Africa’s second-largest gold producer and the world’s 11th by 2023. Barrick is the world’s second-largest gold miner.
Barrick said in a statement that in addition to the export ban, Malian authorities have issued a temporary order on existing gold production at Loulo-Gounkoto, further impeding exports and disrupting operations.
Two sources with direct knowledge of the matter said the order amounts to confiscation of the gold.
The sources did not say how dangerous the volume was, but Barrick’s Malian employee estimated the gold production at around 4 tonnes.
The company said that if the gold supply problem is not resolved by next week, Barrick will have no choice but to suspend operations at Loulo-Gounkoto temporarily.
