Lusaka/DAKAR/TORONTO – 19 May 2025 — Mali’s military government is seeking a court order to place Barrick Gold’s flagship Loulo-Gounkoto mine under provisional state control, intensifying an ongoing standoff that has sent ripples across Africa’s mining sector—including Zambia, where Barrick also holds major operations.
The Tribunal de Commerce in Bamako is set to begin hearings on the request this Thursday. If approved, the ruling could enable the Malian state to take over operations at the mine, which has been shut since January due to disputes over taxes and a new mining code that increases government royalties and shareholding.
The case raises serious concerns for Zambia’s mining sector, where investor confidence remains fragile. Barrick operates the Lumwana copper mine in North-Western Province—one of the country’s largest—and is currently considering a multi-billion-dollar expansion.
Regional observers say Mali’s hardline approach could influence how governments across Africa, including Zambia, negotiate future mining terms—especially amid rising resource nationalism.
Zambian mining experts warn that a precedent of state takeovers could deter much-needed foreign investment, particularly at a time when countries like Zambia are actively courting global capital to boost copper production and energy transition minerals.
Cross-Border Concerns for Barrick
Barrick, which has maintained a relatively stable presence in Zambia, now finds itself facing potentially coordinated pressures across African jurisdictions. In Mali, the government in late 2023 seized approximately 3 metric tons of gold—worth about $317 million—citing alleged unpaid taxes. The company responded by suspending operations and launching international arbitration proceedings in December 2024.
In its May 7 earnings report, Barrick disclosed it had received a formal warning from Mali demanding production resume or face state takeover. Sources say the government now seeks to install an interim management team to operate the mines under its direction.
Barrick CEO Mark Bristow, who has strong ties to both Mali and Zambia, stated this month that multiple attempts to resolve the issue have fallen through. He revealed the company had agreed to pay over $430 million to resolve the dispute and secure the release of four detained employees—but the Malian government rejected the deal over a technical error in the agreement’s text.
Implications for Zambia’s Mining Agenda
Zambia has recently reformed its mining tax regime and introduced investor-friendly policies under President Hakainde Hichilema, aiming to triple copper output by 2030. However, the unfolding situation in Mali could influence investor sentiment, particularly among multinational firms wary of regulatory instability in the region.
Industry analysts say Zambia must continue strengthening legal and fiscal frameworks to distinguish itself from higher-risk jurisdictions.
“Zambia should be watching this closely,” said a Lusaka-based mining consultant. “As mining becomes more strategic globally, countries are asserting more control—but that needs to be balanced with long-term investor trust.”
For now, operations at Barrick’s Lumwana mine remain unaffected, and the company has reaffirmed its commitment to Zambia. Still, the outcome of Mali’s court proceedings could shape how Barrick—and other majors—prioritize future capital allocation across the continent.
