(Ecofin Agency) - Earlier this year, Barrick Gold, a Canadian firm, announced that the Malian government planned to seize its gold stock. The company warned it would stop production if this happened.

Mali has started carrying out a temporary order to seize gold stored at Barrick's Loulo-Gounkoto complex on January 11. Various reports indicate that 3 to 4 tonnes of gold, worth between $245 million and $380 million, will be moved by helicopter to an unknown location.

The move could heighten ongoing tensions with Barrick, which runs Mali's largest gold mine. The company has previously threatened to halt operations if the export ban and gold seizure were not lifted. It’s unclear what will happen in the coming weeks.

The dispute between both parties started last year after the Malian government revealed plans to recover a shortfall of CFA300 to CFA600 billion from mining companies active in the country. Barrick, Mali's top gold producer, is facing a claim of about $500 million, which it disputes. Negotiations have stalled, and an arrest warrant was issued for CEO Mark Bristow, along with the detention of several local executives. Most other mining companies have reached agreements with the government.

Malian Finance Minister Alousseni Sanou reported that CFA500 billion had already been recovered from mining companies by December 2024.

This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho