Big trouble is brewing in West Africa’s gold heartland. Barrick Mining, one of the world’s top gold producers, has just lost control (at least for now) of its flagship Loulo-Gounkoto complex in Mali.

Yep, you read that right. A Malian court handed operational control of the site to a state-appointed administrator, escalating an already tense standoff between Barrick and the government.

On Monday, June 16, 2025, a court in Bamako placed Barrick’s Loulo-Gounkoto gold mine, which accounts for about 14% of the company’s global output, under provisional state control for six months. A former health minister, Soumana Makadji, has been appointed to run the show.

This move follows months of tension.

In November 2024, the government blocked Barrick’s gold exports.

In January 2025, it seized three metric tons of gold, forcing the company to halt operations.

Now, the government is stepping in to reopen the mine itself, amid soaring global gold prices.

Barrick, naturally, isn’t happy. The company says the actions are unjustified and plans to appeal the decision. “Justice was neither heard nor served,” said their lawyer, Issaka Keita.

It’s all about money and control.

Mali recently introduced a new mining code that raises taxes and gives the government a bigger stake in gold projects. Barrick and the government have been negotiating a new contract since 2023, but things clearly hit a wall.

The government is also a shareholder in the Loulo-Gounkoto mine, so it’s not just flexing its regulatory muscles; it is protecting its own financial interests. With gold prices at near-record highs, reopening the mine could pump over $1 billion in revenue into Mali’s economy within a year.

If you’re holding Barrick shares, you’ve probably already felt the sting. The stock dropped 0.7% in early Toronto trading after the news broke, and that is just the beginning.

Worse, the Loulo-Gounkoto complex has been removed from Barrick’s 2025 production forecast, which means the company is already bracing for impact.

This kind of government intervention sends a clear warning to foreign investors: Mali may no longer be a safe bet for mining. If you’re a gold-focused investor, this raises serious questions about sovereign risk and the future of resource nationalization in Africa.

Could This Be a Turning Point for Mali’s Mining Sector?

The short answer is yes.

Mali is Africa’s third-largest gold producer, and the Loulo-Gounkoto complex is one of its crown jewels. But this high-profile dispute could scare away other mining giants who were eyeing Mali’s rich underground reserves.

That said, there’s still a glimmer of hope. Behind the scenes, both sides are still talking. In a surprising twist, Mali has allowed Barrick to repatriate 20% of its earnings into an international bank account, an exception not granted to other miners.

So while things look rough now, a resolution may still be on the table before Barrick’s mining license expires in February 2026.