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Monday, Sep 22, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Barrick Mining employees remain jailed as Mali challenges bail ruling
Barrick Mining employees remain jailed as Mali challenges bail ruling
The Loulo-Gounkoto facility in Mali. Image via Barrick Mining.

Gold

Barrick Mining employees remain jailed as Mali challenges bail ruling

The employees face allegations of money laundering, terrorism financing and tax-related offenses

Malian prosecutors have appealed Barrick Mining Corp (TSE: ABX) (NYSE: B) (ETR: ABR0) on bail, prolonging uncertainty around the Canadian miner’s operations.

Announced on Thursday, the workers were detained in late 2024, and will remain in custody until the Court of Appeal reviews the case. The judge had set bail at 50 billion CFA francs, or approximately USD$$90.3 million, a figure viewed as unusually high.

The employees face allegations of money laundering, terrorism financing and tax-related offenses. Barrick has denied the charges and said the detentions reflect growing pressure from Mali’s military-led government. The dispute centers on the Loulo-Gounkoto gold complex, once Barrick’s largest mine in Africa and a major source of revenue.

Tensions escalated after Mali’s 2023 mining code increased state royalties and equity stakes. While companies such as Allied Gold (TSE: AAUC) and B2Gold Corp. (NYSEAMERICAN: BTG) reached agreements, Barrick resisted. In 2024, the junta demanded a larger share of profits from Loulo-Gounkoto. However, Barrick refused, prompting authorities to jail executives, block exports and seize bullion.

The company then sought international arbitration late last year and shut down the mine in January 2025. In June, Mali appointed a provisional administrator to run Loulo-Gounkoto for six months. Additionally, the government’s actions pushed Barrick to announce a more than $1 billion writedown, slashing the value of its 80 per cent stake. The mine previously supplied about 15 per cent of Barrick’s global gold production, leaving a large hole in its portfolio.

Read more: NevGold closes its Nutmeg Mountain acquisition with Goldmining for $3 million

Read more: NevGold’s long intervals of antimony & gold mineralization turn heads

Authorities seized exports and three tonnes of bullion

The situation worsened in August when Hilaire Diarra, a former Barrick negotiator and general manager in Ivory Coast, joined Mali’s side. He accepted a role as special adviser to President Assimi Goïta, a move that further undermined Barrick’s position.

The ruling comes amid rising tensions between Barrick and Mali’s military junta. Since January 2025, the junta has managed Barrick’s Loulo–Gounkoto gold complex. Authorities suspended exports and seized three tonnes of bullion. In mid-July, military helicopters removed another tonne of gold worth about USD$117 million.

This conflict mirrors a regional trend. Junta-led governments in Burkina Faso, Niger, Guinea, and the Democratic Republic of the Congo are asserting greater control over natural resources. They aim to tighten export rules, demand higher royalties, and claim larger profit shares. Additionally, soaring gold prices have encouraged governments to push harder.

Barrick’s Malian operations remain vital. The Loulo-Gounkoto complex generated USD$949 million in revenue during the first nine months of 2024. It also accounted for 14 per cent of Barrick’s total gold production. Consequently, the stakes remain high for both the company and the Malian state.

Meanwhile, Barrick is not the only target. In November 2024, Mali detained Resolute Mining Ltd (ASX: RSG) CEO Terence Holohan and two colleagues. Authorities held them in Bamako during tax negotiations. The Australian company agreed to pay USD$160 million to resolve the dispute. Subsequently, Mali released Holohan and the executives.

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