Barrick Seeks World Bank Arbitration to Halt Mali Mine Takeover

Barrick 

ICSID Provisional Measures Could Delay Government Control of Loulo-Gounkoto Site

Political Risk in Africa Heightens for Western Mining and Scrap Investors

Barrick Gold has asked the World Bank’s arbitration tribunal to intervene in Mali’s legal push to seize its flagship mine. The company is seeking “provisional measures” from the International Centre for Settlement of Investment Disputes (ICSID) to prevent Mali from placing the Loulo-Gounkoto mine under provisional administration. A local court ruling on June 2 may determine if Mali takes control.

The Loulo-Gounkoto mine has been shut since January after Mali seized 3 tons of gold, citing unpaid taxes. Barrick denies wrongdoing and claims the seizure is politically motivated. The shutdown has impacted regional scrap flows and disrupted supply chains in West Africa’s informal recycling economy.

Mali's military-led government has introduced a stricter mining code and taken a hard stance on foreign mining firms. Unlike its peers, Barrick has refused to yield to revenue-sharing demands, triggering regulatory retaliation. The dispute has shuttered Barrick’s Bamako office, disrupted local contractor operations, and triggered layoffs, compounding economic instability.

Barrick argues that Mali is shifting the terms of its decades-long investment. It says the provisional administration would worsen the dispute and harm investor confidence. Legal experts note that while ICSID rulings carry weight, Mali may ignore them, risking further disinvestment from Western stakeholders in metals and scrap.

ScrapInsight Editorial View:

Barrick’s standoff with Mali exposes rising geopolitical risks for scrap and mining stakeholders in Africa. While the focus here is gold, disruptions affect broader secondary metal flows—from dismantled mining equipment to steel scrap logistics tied to mining communities. Investors and recyclers should monitor how arbitration rulings play out, especially as sovereign resource nationalism gains traction across the Global South. If Mali flouts international norms, we could see a chilling effect on cross-border scrap investments and more trade being diverted to less risky jurisdictions like Ghana or Senegal.