Gold Under Siege: Barrick Gold's Struggles in Mali
April 27, 2025, 4:53 am
Location: Canada, Ontario, Toronto
Employees: 10001+
Founded date: 1983
Total raised: $530K
In the heart of West Africa, gold glimmers like a beacon of hope. Yet, for Barrick Gold, the world's second-largest gold producer, this beacon has dimmed. A bitter dispute with the Malian government has cast a long shadow over its operations, leading to layoffs and uncertainty. The Loulo-Gounkoto complex, a vital source of gold, is now a battleground of bureaucracy and broken promises.
For two years, Barrick Gold has been embroiled in a conflict with Mali's government. The stakes are high. Hundreds of jobs hang in the balance as subcontractors struggle to stay afloat. The situation is dire. Some subcontractors have not seen a payment in months. They are now laying off staff, signaling that the end of this dispute is nowhere in sight.
The Loulo-Gounkoto complex, a crown jewel in Barrick's portfolio, has been silent since January. The Malian government seized approximately three metric tons of gold, accusing Barrick of failing to meet tax obligations. This seizure is not just a financial blow; it’s a stark reminder of the precarious nature of mining in politically unstable regions.
Mali's government, which came to power after a series of coups in 2020 and 2021, has introduced a new mining code. This code aims to increase state revenue from mining operations. However, it has also created friction with foreign companies. Barrick has found itself on the wrong side of this new order. The government has blocked gold exports since November, tightening its grip on the lucrative resource.
The fallout is palpable. Boart Longyear's local subsidiary, BLY Mali, announced its liquidation after its contract with Barrick was suspended. This company employed 98 people as of March. Now, those jobs are gone. ETASI, a heavy equipment rental firm, has also suspended all personnel, affecting 68 employees. ATC, a metal construction company, has laid off nearly all its workers. The numbers tell a grim story.
MAXAM, a civil explosives subcontractor, is preparing for a temporary work stoppage. The internal documents suggest that the number of employees affected could be much higher than reported. This discrepancy highlights the chaos and confusion that often accompany such disputes.
As the situation escalates, Malian authorities have taken further action. They shut down Barrick's office in Bamako, the capital, over alleged tax non-payment. This move is a clear escalation, intensifying the already fraught relationship between the Canadian miner and the Malian government.
Despite the turmoil, Barrick employees have continued to receive their salaries. However, the company is not without its own challenges. Nearly 40 Malian staff members from the Loulo-Gounkoto complex are being relocated to Barrick's Kibali mine in the Democratic Republic of Congo. This is just the beginning; a total of 100 employees are slated for transfer.
In February, Barrick signed an agreement aimed at resolving the dispute. Yet, the Malian government has yet to approve or execute this agreement. This delay only adds to the uncertainty. The clock is ticking, and the pressure is mounting.
The implications of this dispute extend beyond Barrick and its subcontractors. The local economy is at risk. Mining is a lifeline for many in Mali. Job losses ripple through communities, affecting families and livelihoods. The gold that once promised prosperity is now a source of strife.
As the dust settles, the future remains uncertain. Will Barrick find a way to navigate this turbulent landscape? Or will the gold that once shone brightly become a tarnished memory? The answers lie in the hands of those who wield power in Mali.
In the world of mining, relationships are everything. Trust is the bedrock upon which successful operations are built. Yet, in Mali, that trust has eroded. The tug-of-war between Barrick and the government illustrates the complexities of resource extraction in politically volatile regions.
As the situation unfolds, all eyes will be on Mali. The outcome of this dispute could set a precedent for future foreign investments in the country. Will investors see Mali as a land of opportunity or a minefield of risk?
In the end, the gold may still glimmer, but its path to prosperity is fraught with challenges. Barrick Gold's struggle in Mali is a cautionary tale. It serves as a reminder that in the quest for riches, the road can be rocky, and the price of gold may not always be worth the cost.
As the sun sets over the Loulo-Gounkoto complex, the future remains shrouded in uncertainty. The echoes of layoffs and disputes linger in the air. For Barrick Gold, the battle is far from over. The stakes are high, and the outcome remains to be seen.
For two years, Barrick Gold has been embroiled in a conflict with Mali's government. The stakes are high. Hundreds of jobs hang in the balance as subcontractors struggle to stay afloat. The situation is dire. Some subcontractors have not seen a payment in months. They are now laying off staff, signaling that the end of this dispute is nowhere in sight.
The Loulo-Gounkoto complex, a crown jewel in Barrick's portfolio, has been silent since January. The Malian government seized approximately three metric tons of gold, accusing Barrick of failing to meet tax obligations. This seizure is not just a financial blow; it’s a stark reminder of the precarious nature of mining in politically unstable regions.
Mali's government, which came to power after a series of coups in 2020 and 2021, has introduced a new mining code. This code aims to increase state revenue from mining operations. However, it has also created friction with foreign companies. Barrick has found itself on the wrong side of this new order. The government has blocked gold exports since November, tightening its grip on the lucrative resource.
The fallout is palpable. Boart Longyear's local subsidiary, BLY Mali, announced its liquidation after its contract with Barrick was suspended. This company employed 98 people as of March. Now, those jobs are gone. ETASI, a heavy equipment rental firm, has also suspended all personnel, affecting 68 employees. ATC, a metal construction company, has laid off nearly all its workers. The numbers tell a grim story.
MAXAM, a civil explosives subcontractor, is preparing for a temporary work stoppage. The internal documents suggest that the number of employees affected could be much higher than reported. This discrepancy highlights the chaos and confusion that often accompany such disputes.
As the situation escalates, Malian authorities have taken further action. They shut down Barrick's office in Bamako, the capital, over alleged tax non-payment. This move is a clear escalation, intensifying the already fraught relationship between the Canadian miner and the Malian government.
Despite the turmoil, Barrick employees have continued to receive their salaries. However, the company is not without its own challenges. Nearly 40 Malian staff members from the Loulo-Gounkoto complex are being relocated to Barrick's Kibali mine in the Democratic Republic of Congo. This is just the beginning; a total of 100 employees are slated for transfer.
In February, Barrick signed an agreement aimed at resolving the dispute. Yet, the Malian government has yet to approve or execute this agreement. This delay only adds to the uncertainty. The clock is ticking, and the pressure is mounting.
The implications of this dispute extend beyond Barrick and its subcontractors. The local economy is at risk. Mining is a lifeline for many in Mali. Job losses ripple through communities, affecting families and livelihoods. The gold that once promised prosperity is now a source of strife.
As the dust settles, the future remains uncertain. Will Barrick find a way to navigate this turbulent landscape? Or will the gold that once shone brightly become a tarnished memory? The answers lie in the hands of those who wield power in Mali.
In the world of mining, relationships are everything. Trust is the bedrock upon which successful operations are built. Yet, in Mali, that trust has eroded. The tug-of-war between Barrick and the government illustrates the complexities of resource extraction in politically volatile regions.
As the situation unfolds, all eyes will be on Mali. The outcome of this dispute could set a precedent for future foreign investments in the country. Will investors see Mali as a land of opportunity or a minefield of risk?
In the end, the gold may still glimmer, but its path to prosperity is fraught with challenges. Barrick Gold's struggle in Mali is a cautionary tale. It serves as a reminder that in the quest for riches, the road can be rocky, and the price of gold may not always be worth the cost.
As the sun sets over the Loulo-Gounkoto complex, the future remains shrouded in uncertainty. The echoes of layoffs and disputes linger in the air. For Barrick Gold, the battle is far from over. The stakes are high, and the outcome remains to be seen.