STRUGGLES IN THE SAHEL

Jun 20, 2025 at 10:48 am

Cotonou (Benin)

Pedro Stropasolas

Mali takes control of one of Africa's largest gold mines and launches its own refinery: 'a dream', says president...

The Loulo-Gounkoto complex, one of the largest gold mines in the world and owned by the Canadian company Barrick Mining, has been placed under provisional administration by the State of Mali. The measure was officialized on Monday (16) by the Commercial Court of Bamako and occurs in the context of a dispute between the Malian government, led by General Assimi Goïta, and the foreign company.

Mali, Africa’s second-largest gold producer and the world’s fourth-largest, says Barrick owes taxes and operates under unfavorable contracts signed with previous governments. In response, the company, considered the continent’s largest gold producer, said it would appeal the court ruling.

The court order appointed former health minister Zoumana Makadji as the mine’s interim administrator. Officials from Mali’s government, which is set to reform its mining code in 2024, said the decision “protects national economic interests” and prevents “a sudden closure of the mine in the absence of a revised agreement.” The mine accounts for about 14% of Barrick’s revenues, and Mali holds a 20% stake.

In May, the government officially requested the court to change the management of the mine, citing an interest in reopening it at a time of historic highs in gold prices. The dispute with Barrick led to the closure of the company’s offices in Bamako, the capital, and escalated to the point where the government issued an arrest warrant for the company’s CEO, Mark Bristow, in December 2024. The company has offered $370 million to the Malian state.

In a statement, Barrick said that “while its subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator.”

The tension with Barrick is not an isolated case. As part of a new policy to strengthen the national economy, the Malian government – ​​a member of the Alliance of Sahel States (AES) alongside Burkina Faso and Niger – has been putting pressure on several foreign companies in the mining sector.

Refinery with support from Russia

On the same day it took over management of the mine, the government began construction of West Africa's first state-owned gold refinery, in partnership with the Russian conglomerate Yadran.

Located in Senou, 19 km from Bamako, the refinery will have the capacity to process up to 200 tons of gold per year. Mali will be a majority shareholder in the project, which aims to ensure that the nation can benefit directly from its mineral resources, without relying on foreign refineries.

During the groundbreaking ceremony, President Assimi Goïta declared: “This is a long-awaited dream of the Malian people and today it has become a reality.” The speech was made during the inauguration ceremony of the work, when the president laid the first brick in the construction.

Yadran Group Chairman Irek Salikhov welcomed the initiative and said the refinery is set to become a regional processing hub, also serving neighboring countries such as Burkina Faso. According to him, the goal is to enable Mali to “refine all the gold mined on its territory, putting an end to decades of exporting raw ore.”

There is still no official deadline for the completion of the refinery, which represents another step by the Malian government towards sovereign control over the gold production chain.

Edited by: Nathallia Fonseca

Re-posted courtesy of Brasil de Fato