Canada’s Barrick Mining had its Loulo-Gounkoto gold complex in Mali placed under state control by a court on Monday in a major escalation of a dispute over taxes and ownership.
A former Malian health minister, Soumana Makadji, will take over as provisional administrator for six months, the presiding judge said.
Barrick said it will appeal the decision.
The move follows actions by the Malian government to block gold exports and seize gold stocks held by Barrick’s subsidiaries.
Barrick, in a statement, said it believes those actions, which led to the temporary suspension of its operations, were unjustified.
“Justice was neither heard nor served,” Issaka Keita, one of Barrick’s lawyers, told Reuters. The Loulo-Gounkoto complex, which accounted for 14% of the company’s output, has been suspended since January amid a standoff between the company and the government over taxes and ownership.
The government, a shareholder in the mining complex, in May asked the Bamako Commercial Court to appoint an administrator, signalling its desire to reopen the complex amid record-high global gold prices.
Barrick shares were down 0.7% in early Monday trade in Toronto.
A spokesperson for Mali’s mines ministry declined to comment.
If reopened, the mine could bring in revenue worth at least $1 billion over the next year, according to Reuters estimates, as gold prices soar.
The standoff, however, risks repelling potential investors in Mali, while Barrick’s shares have lagged those of its peers.
The two sides have been in negotiations since 2023 over the implementation of a new mining code that raises taxes and gives the government a greater share in the gold mines.
They are trying to agree on a new contract in line with the new legislation.
Barrick’s mining licence in Mali is set to expire in February 2026, according to people familiar with the matter.
The company, formerly Barrick Gold, suspended operations at the complex in mid-January after authorities seized three metric tons of its gold stock. The government had blocked its exports in November 2024.
Barrick has since removed the complex from its overall output forecast for 2025.
Outside of court, negotiations between the two sides continue. Mali has agreed to allow Barrick to repatriate 20% of its earnings into an international bank account, an exception that was not made for other foreign miners, two people familiar with the matter said.
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