Africa’s huge gold mine that’s been shut down after £190mn worth of gold was seized | World | News

Africa is a continent full of natural resources. From gold and diamonds to huge oil reserves, the continent has a lot of wealth within it. With that comes a lot of competition, especially when it comes to mining. And one mine has been making headlines recently after it was forced to shut down following the seizure of a huge amount of gold.

Mali’s Loulo-Gounkoto gold mine, one of the largest in Africa, was forced to shut down after the country’s military-led government seized three metric tonnes of gold worth approximately £190 million. The mine, operated by Canadian company Barrick Gold, has been at the centre of a growing dispute between the miner and Malian authorities over new regulations in the country’s mining sector.

The Loulo-Gounkoto complex, located near the border with Senegal, is a major contributor to Mali’s economy. 

The site, which consists of both open-pit and underground mining operations, produced nearly 700,000 ounces of gold in 2023 and has an estimated 7.3 million ounces of gold reserves. 

Barrick Gold reportedly holds an 80% stake in the mine, while the Malian government owns the remaining 20%. 

The mine has contributed more than £790 million ($1 billion) to Mali’s economy in 2023 alone, according to Mining Technology.

Operations at the mine were officially suspended in January after Malian officials blocked gold shipments and seized the stockpile, storing it at state-owned Banque Malienne de Solidarité (BMS), Reuters reported. 

Barrick confirmed the seizure and halted mining activities in response, furloughing expatriate employees and preparing to scale back its local workforce of approximately 8,000 workers.

The company has been in conflict with Mali’s government since 2023 over the country’s new mining code, which demands a greater state share in mining revenues. 

The new regulations, part of a broader shift by Mali and its neighbouring military-led governments in Burkina Faso and Niger, aim to increase government control over mining profits from foreign companies. 

The disagreement escalated last year when Malian authorities detained four Barrick employees and issued an arrest warrant for CEO Mark Bristow, according to Reuters.

Barrick has stated that Mali assured the company the seized gold still belongs to them but has not given permission for shipments to resume.

Bristow said the company is ready to restart operations as soon as shipments are allowed, explaining that Barrick had paid £365 million ($460 million) to Mali’s government last year and was set to contribute £436 million ($550 million) in 2024 before the dispute halted production.

The closure of Loulo-Gounkoto has major economic implications for Mali, where gold mining accounts for over 80% of the country’s exports. 

The shutdown has also led to concerns over job losses, with local mining unions warning that thousands of workers could be affected if operations do not resume soon.

Barrick has proposed that an independent expert be brought in to mediate the dispute and determine a resolution based on the facts. 

Bristow has also warned that continued disputes over mining regulations could drive foreign investment away from Mali. 

“Ultimately, it’s the people of Mali that lose,” he said. “The investors will move on to another country, another project and other opportunities.”

The company has stated that it can keep the mine on temporary closure for a short period while negotiations continue. 

However, if no agreement is reached, Barrick may be forced to make further decisions regarding its long-term operations in Mali.