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Barrick Gold (NYSE:GOLD) is facing mounting uncertainty in Mali as the military regime seeks to boost its control of the lucrative mining sector at a time of growing Russian influence in the country, and may be planning to seize control of the company's Loulo-Gounkoto complex, one of the world's largest producing gold mines, The Globe & Mail reported Monday.
Mali's junta, which seized power in 2021 and later formed an alliance with Russia's Wagner Group, has been targeting the mining sector for more than a year through an industry audit and new mining code with the aim of securing greater state control of mining comapnies.
Two publications, Africa Report and the Africa Defense Forum - the latter published by the Africa Command of the U.S. military - recently suggested the military junta is targeting Loulo-Gounkoto, which Barrick (GOLD) says has contributed more than $1B to Mali's economy during the past year.
The Loulo-Gounkoto complex currently holds proven and probable gold reserves estimated at 6.7M oz, with measured and indicated gold resources totaling 9.1M oz; it produced 683K oz of gold in 2023.