Mali’s military government is holding gold seized from Barrick Gold’s Loulo-Gounkoto mine site at state-owned Banque Malienne de Solidarite as the miner pursues plans to suspend its operations in the country.
The move escalates an ongoing dispute between Barrick and Malian authorities, who, like fellow military-led governments in neighbouring Niger and Burkina Faso, are demanding a bigger share of revenues from Western miners.
Reuters reported on Monday that Malian officials had seized about three metric tonnes of gold worth $245 million.
Barrick confirmed the seizure on Tuesday and said it had suspended operations in response.
Speaking on condition of anonymity, a Barrick employee in Mali and a consultant for mining companies in the country said the gold was now being stored at BMS.
In a January 2 order seen, judge Boubacar Moussa Diarra ordered the seizure of the gold and its storage in the Banque de Developpement du Mali in the capital Bamako.
Malian authorities have not responded to requests for comment on the seizure of the gold or Barrick’s suspension of operations.
Barrick, which employs around 8,000 people in Mali, will lay off expatriate staff by the end of this week and plans to begin furloughing local staff from next week.
Some of the expatriate employees will be relocated to other Barrick mines, others have been told not to return to Mali from leave while a skeleton crew of key maintenance, security and emergency workers will stay.
Gold is also Mali’s top foreign currency earner, accounting for more than 80% of total exports in 2023.
