The military governments of Mali, Burkina Faso and Niger are trying to renegotiate terms and gain a bigger share of mining revenues after a series of coups that have seen them shift away from their traditional backers France, the United States and the United Nations towards Russia.

The Mali standoff, threats by Burkina Faso's junta to strip permits and the seizure of a French-run uranium site in Niger have unsettled Western miners in the region and could limit further investments, industry insiders say.

Barrick, whose Loulo-Gounkoto mining complex in Mali accounts for around 14% of its 2025 estimated gold output, has been in a dispute since 2023 with the country's government, over a contract based on new mining rules.

Mali was Africa's second-biggest gold producer in 2023 and 11th in the world, the World Gold Council said. Barrick is the second-largest gold mining company globally.

In addition to restrictions on shipments, the authorities in Mali have now issued an interim order against the existing gold stock at Loulo-Gounkoto that has further prevented exports and disrupted operations, Barrick said in a statement.

A Barrick employee in Mali estimated the stock to be at around 4 tonnes of gold.

If its inability to ship gold "is not resolved within the coming week, Barrick will have no choice but to temporarily suspend operations at Loulo-Gounkoto," the company said.
A spokesperson for Mali's mines ministry could not immediately be reached for comment.

The Barrick employee in Mali said departments at the mine had been told to prepare for a suspension. Another source, also speaking on condition of anonymity, said mine employees had been informed of the same.

Barrick warned last month that conditions at Loulo-Gounkoto had deteriorated significantly, with employees detained without cause and shipments of bullion blocked.

Jefferies analysts said a production suspension at the mine could reduce Barrick's earnings before interest, taxes, and amortization by 11% in 2025.

Mali's government wants Barrick's operations to be governed under new mining rules adopted in 2023, Barrick has said, but the law has no application to existing operations.

Barrick owns 80% of Loulo-Gounkoto, with Mali owning 20%.

--Reuters--