In a recent development, Judge Issa Aguibou Diallo has ordered the appointment of Zoumana Makadji, a chartered accountant and former Malian Minister of Health, as the provisional administrator of one of Africa’s most valuable mining assets. This decision transfers operational control of the mining asset to an external authority, marking a significant shift in management.
The dispute between Barrick Gold, Africa’s largest gold producer, and Malian authorities has escalated over allegations of unpaid taxes and unfair contracts signed under previous administrations. The tension peaked in December with an arrest warrant issued for Barrick CEO Mark Bristow and the company offering a $370 million settlement to the government.
Barrick Gold confirmed that while its subsidiaries remain the legal owners of the mine, operational control has been handed over to an external administrator. The company has also submitted an arbitration request to the International Centre for Settlement of Investment Disputes (ICSID) to resolve the differences with Mali regarding the Loulo-Gounkoto complex.
Despite the arbitration process, the Malian government has detained several Barrick employees and halted gold exports, intensifying the conflict. Barrick remains open to dialogue with the authorities and is committed to finding a mutually acceptable solution.
The ongoing detention of Barrick employees has been strongly condemned by the company as inconsistent with the trust and transparency required for a long-term partnership. The government’s actions have been criticized for lacking a credible rationale and using the detained staff as leverage in negotiations.
Mali, known as a top gold producer in Africa, is facing internal security challenges and economic difficulties. Since the military takeover in 2020, the transitional government has been pressuring foreign mining operators to increase revenue collection, leading to confrontations with mining firms.
In a similar incident last November, the CEO of Australia-based Resolute Mining and two staff members were arrested in Bamako, with their release following a payment of $80 million to the Malian government. These incidents raise concerns about the future investment climate in Mali and the stability of the mining sector in the country.
