Mali government seizes $117M of gold from Toronto company's mine

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Malian government helicopters landed unexpectedly at Barrick Mining Corp.’s gold mine on Thursday and seized more than a tonne of the precious metal, according to the company.

The move marks another escalation in a protracted dispute between the West African country’s government and Toronto-based Barrick, which shuttered its giant Loulo-Gounkoto gold mining complex earlier this year after Malian authorities blocked bullion exports and detained senior employees.

The helicopters landed “unannounced” and took more than one tonne of gold — equivalent to more than 2,204 pounds — “potentially for sale by the provisional administration — though that remains to be seen and the situation is evolving,” Barrick said.

One tonne of gold is worth about $117.2 million on Thursday, with gold trading around $3,324 an ounce.

The gold seized was in addition to three tonnes of gold the Malian government took in January. Barrick, one of the world’s biggest gold producers, says the government still hasn’t communicated the fate of that metal.

Mali last month said a temporary administrator would restart production at the Loulo-Gounkoto complex, which was put under provisional administration earlier in June.

An email to the Malian government’s mining ministry was not immediately answered.

The troubles began in 2023 when Mali’s cash-strapped military regime demanded foreign investors make payments for alleged back taxes and adhere to a new mining law granting the state higher royalties and bigger stakes in joint ventures. The owners of other gold mines in the country, including Allied Gold Corp. and B2Gold Corp., have reached settlements.

Barrick remains committed to negotiating a resolution to the dispute and staying in Mali, Barrick’s Chief Executive Officer Mark Bristow said Thursday in a letter published on the company’s website. The firm said it’s moving ahead with international arbitration proceedings against the country, with a first hearing set to take place by the end of July.

“We are not simply hoping for a favorable outcome — we are pursuing resolution through the proper legal channels that the Government of Mali agreed to in our Mining Conventions,” Bristow said.