Mali's Hardball Talks with Barrick: Two Former Employees Drive Negotiations

Mali's mining sector, a cornerstone of its economy, has faced challenges and reforms in recent years. Two former employees, now in key government positions, have significantly influenced Mali's negotiating strategy with Barrick Gold Corp., pushing for increased state revenue and asserting sovereignty over natural resources. This article explores their roles and the potential impact of Mali's hardball approach on foreign investment in the mining sector.

Mali's gold production, ranking as the fourth largest in Africa, represents 64% of total exports and 21% of government revenue. The sector supports over two million people, with artisanal mining contributing approximately 10% of gold exports. However, the gold sector has faced challenges, including the closure of unproductive mines and new mines opening in 2017, adding 14 tons per year to production.

Two former employees, now in key government positions, have driven Mali's hardball talks with Barrick Gold Corp. Alousseni Sanou, the Finance Minister, has been instrumental in pushing for increased state revenue from the mining sector. In January 2025, Sanou announced that Mali would receive a substantial boost to its economy, totaling 750 billion CFA francs ($1.2 billion) from the mining sector in the first quarter of the year. This was a result of a comprehensive restructuring of its mining operations, which included a new mining code adopted in 2023 that increased the state's share of mining revenues and removed tax exemptions for mining companies.

Another key figure is Abdoulaye Traore, the Secretary-General of the Economy and Finance Ministry. Traore has been involved in the negotiations with Barrick and has pushed for specific demands, such as the payment of unpaid taxes and the release of seized gold stocks. In the ongoing dispute with Barrick, Mali has demanded approximately $500m (C$719.76m) in unpaid taxes from the company and issued an arrest warrant for Barrick Gold CEO Mark Bristow. The government has also seized nearly three tonnes of gold, valued at up to $250m, from Barrick's Loulo-Gounkoto complex. These demands reflect the government's determination to assert its sovereignty over the country's natural resources and rebalance relations with multinational companies.

Mali's hardball approach, characterized by its efforts to recover unpaid taxes and dividends from foreign mining giants and increase the state's share in mining projects, has the potential to impact foreign investment in the country's mining sector both in the short and long term. In the short term, Mali's aggressive stance may discourage new investments in the mining sector, disrupt operations, and tarnish its reputation as a safe and attractive investment destination. However, in the long term, it could encourage local investment, increase revenue for Mali, and lead to a more equitable and transparent mining framework, potentially attracting new investments under better terms.

Mali's stance on Barrick Gold Corp. appears to be more assertive compared to its approach with other mining companies, such as Allied Gold Corp. and Toubani Resources. This suggests that the government is prioritizing revenue generation, sovereignty and control, and transparency and accountability. By taking a firmer stance with Barrick, Mali signals its commitment to reshaping its relations with multinationals and attracting new investments in a more equitable and transparent framework. This approach aligns with the government's broader objectives of strengthening national control over key sectors like gold while attracting new investments.

In conclusion, Mali's hardball talks with Barrick Gold Corp., driven by two former employees now in key government positions, reflect the government's determination to assert its sovereignty over natural resources and rebalance relations with multinational companies. While this approach may have short-term impacts on foreign investment, it could lead to a more sustainable and equitable mining model in the long run, potentially attracting new investments under better terms.