A significant shift in the dynamics of mining operations in Mali has occurred, as Hilaire Diarra, a senior executive previously engaged by Barrick Gold, has left the company to accept a role as special counsellor to the President of Mali. This change, confirmed by a decree signed in late August and verified by the Malian ministry, has raised concerns for Barrick, which is currently grappling with challenges in retaining control over its flagship Loulo-Gounkoto gold complex.
Diarra, who previously held the position of general manager at Barrick’s Tongon gold mine in the Ivory Coast, was involved in negotiations with the Malian government prior to his departure. His shift to an advisory role could have notable implications for Barrick, as it confronts an ongoing power struggle over its operations in the region.
The situation at the Loulo-Gounkoto site deteriorated earlier this year when a Malian court appointed a provisional administrator to oversee the operations. This move followed Barrick’s suspension of activities six months prior, stemming from stalled negotiations. The administrator, including former Barrick executive Samba Toure, has reportedly sold around one metric ton of gold, equating to approximately 35,274 ounces, but output at the site has dwindled to just 25% of its normal levels.
Diarra, a Malian national and former employee at the Loulo complex, had recently returned from the Ivory Coast to represent Barrick in negotiations. The company’s inability to respond effectively to these challenges has amplified concerns over its continued presence in Mali, especially in light of escalating tensions that have marred negotiations since 2023.
The negotiation patterns hint at significant issues surrounding a new mining code proposed by the Malian authorities, which introduces higher taxes and increases state ownership in mining ventures. This conflict reached a peak in December when the Malian court issued an arrest warrant for Barrick’s CEO, Mark Bristow, which prompted the company to propose a substantial settlement of $370 million.
Recent months have seen further deterioration, including the detention of four Barrick employees and a suspension of gold exports. The Loulo-Gounkoto mine was officially halted in January. Furthermore, the situation escalated in July when Malian military helicopters unexpectedly seized over a metric ton of gold from the site, underscoring the severity of the ongoing disputes.
The conflict not only impacts Barrick’s operations but also hinders the ability of what is regarded as the world’s second-largest gold producer to capitalize on the recent rally in gold prices. As the mining landscape in Mali becomes increasingly contentious, the implications for future investments and operations remain uncertain.
