Mali Started Seizing Gold Stocks at Barrick’s Loulo-Gounkoto Site

SEATTLE (Scrap Monster):  According to a staff document released by Barrick Gold, the military-led administration in Mali has apparently started implementing a temporary order, seizing gold stocks at the company's Loulo-Gounkoto location.

Notably, the corporation and the nation's government have been at odds over a contract that complies with the government's policy of requesting a larger portion of profits from Western miners. The business had threatened to halt operations at the Loulo-Gounkoto facility if limitations were not removed within a week in a previous statement released on January 6, 2025. The most recent memo stated that it had nothing more to contribute to the previous one.

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The Mali government has started enforcing the interim law with effect from January 11, 2025, according to the staff letter that was sent on Sunday. The extent to which the complex's gold holdings are vulnerable to seizure is unclear. Rough estimates place the complex's gold stock at about 4 metric tons, which, given the current price of gold, is worth close to $380 million.

Authorities in Mali declined to comment.

It is anticipated that the Loulo-Gounkoto complex will produce over 14% of the company's gold this year.

Mali's foreign currency is primarily derived from gold. In 2023, it made up more over 80% of the nation's total exports.