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Barrick Seeks World Bank Intervention as Mali Threatens to Seize Major Gold Mine
Barrick Gold has turned to the World Bank’s arbitration tribunal in an attempt to block the Malian government from taking control of its Loulo-Gounkoto gold mine, amid a deepening legal dispute that threatens the company’s long-standing operations in the West African nation.
The move follows the Malian government’s request to a local court to place the mine under provisional administration—a decision expected on June 2. If the court sides with the government, an appointed individual or organization could take over and potentially restart operations at the mine, which has been shut since January after the state seized three tons of gold over a disputed tax claim.
Barrick has strongly denied the tax allegations and argues that the government is using the dispute as leverage to force the company to make further financial concessions.
In a recent filing with the International Centre for Settlement of Investment Disputes (ICSID), Barrick requested “provisional measures” to halt Mali’s efforts. According to Timothy Foden of international law firm Boies Schiller Flexner, such measures are intended to prevent the Malian government from taking actions that could worsen the dispute, including attempts to take control of the mine.
Neither Barrick nor Mali’s Ministry of Mines responded to requests for comment from Reuters.
The legal standoff comes as Mali’s military-led government seeks to tighten control over its lucrative gold sector. As Africa’s third-largest gold producer, Mali has introduced a new mining code and is pressing foreign companies to increase their financial contributions to the state.
While several mining firms have accepted the government’s new terms, Barrick has resisted. The company, which has invested in Mali for over two decades, accuses authorities of arbitrarily changing regulations, making excessive financial demands, and unfairly detaining some of its executives in what it describes as an attempt at coercion.
In a further escalation, the government has shut down Barrick’s corporate office in the capital, Bamako. The mine’s continued closure has led to widespread job losses among contractors and local workers.
A Malian official, speaking on condition of anonymity, told Reuters that the dispute is purely a domestic tax matter and not subject to international arbitration.
Even if the ICSID tribunal grants Barrick’s request for interim relief, legal experts note that the Malian government could choose to ignore the order. However, doing so may risk further damaging the country’s reputation among international investors already wary of the government’s tightening grip on foreign-owned mining assets.
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