The Malian government has issued an arrest warrant for Barrick Gold Corp. CEO Mark Bristow for alleged money laundering, escalating a dispute over mining revenues. This action underscores the growing tensions between the military-controlled government and foreign mining companies operating in the West African nation.
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Mali Targets Barrick Gold in Ongoing Mining Revenue Dispute
The arrest warrant for Bristow follows the detention of four other Barrick employees last month, signaling a significant escalation in the ongoing conflict. The Malian authorities are also seeking the arrest of Abbas Coulibaly, the general manager of Barrick’s Loulo-Gounkoto complex. This complex is a crucial asset for Barrick, contributing substantially to its annual gold production and revenue. In 2023, it represented nearly 14% of the company’s gold production and almost 12% of its total revenue.
The warrants are the latest in a series of measures by the Malian government targeting foreign mining companies. These actions come as Mali, under military control since 2020, has strengthened ties with Russia and expelled European forces and UN peacekeepers. Facing financial constraints, the government has been pressuring investors for substantial payments based on a controversial sector-wide audit, which Barrick has previously criticized.
Barrick Gold Faces Pressure Amidst Wider Industry Scrutiny
Barrick is not alone in facing pressure from the Malian government. Other major gold mining companies, including Resolute Mining Ltd., Allied Gold Corp., and B2Gold Corp., have already reached agreements with the government, transferring over $840 million in total. These agreements often involve accepting terms of a revised mining code that increases royalties based on the fluctuating gold price.
Barrick, however, remains the only major gold producer yet to reach a deal. While the company has offered $370 million to settle claims related to the audit, the Malian government’s demands remain undisclosed. The escalating tensions have led to threats from the Malian finance minister to potentially revoke Loulo’s permits when they come up for renewal in 2026.
The arrest warrant for Bristow follows a similar incident involving Resolute Mining CEO Terry Holohan and two colleagues, who were arrested and subsequently released after the company agreed to a $160 million settlement and adoption of the revised mining law. The situation with Barrick remains unresolved, raising concerns about the future of its operations in Mali and the broader investment climate in the country. The ongoing dispute and the arrest warrant for Bristow introduce significant uncertainty for Barrick Gold and highlight the challenges faced by foreign mining companies operating in politically volatile regions.
Conclusion: Uncertainty Looms Over Barrick’s Future in Mali
The arrest warrant for Barrick Gold CEO Mark Bristow significantly escalates the ongoing dispute between the company and the Malian government. This development underscores the challenges of operating in jurisdictions with political instability and evolving regulatory landscapes. The outcome of this situation will have significant implications for Barrick Gold’s operations in Mali and could influence the broader investment climate in the country’s mining sector.
