Canadian mining giant loses control of African site

Mali has temporarily stripped Canadian firm Barrick of control over the West African country’s largest gold mining operations, amid an escalating dispute over alleged unpaid taxes and royalties.

On Monday, a court in Bamako ruled that the management of the Loulo-Gounkoto gold complex in western Mali be handed over to a state-appointed provisional administrator for six months. Bamako Commercial Tribunal Judge Issa Aguibou Diallo announced that the mine will be managed during the period by Soumana Makadji, a former health minister and professional accountant.

The decision follows the government’s closure of Barrick’s offices in the capital and warnings to take over the site, which has been inactive for months. Mali’s military authorities have defended the move as necessary to maintain operations and protect the country’s economic interests. Barrick, however, has denounced the court order as illegal and a breach of its contractual agreements.

“This ruling follows actions by the Malian government to block gold exports and seize gold stocks belonging to Barrick’s subsidiaries – measures Barrick believes to be unjustified and which led to the temporary suspension of operations,” the mining giant said in a statement.