Reuters was first to report that Malian authorities had seized around 3 tons of gold from a mining complex owned by Canadian miner Barrick Gold in the west of the country, taking the precious metal away by helicopter, as a long-running dispute between the military regime and the world’s second biggest gold producer over its mining contract escalated. Barrick’s shares fell 1.9% on the Toronto Stock Exchange after the story was published.
Why it matters
The seizure, which led Barrick to announce that it would suspend operations in Mali, is part of a wider standoff between West African military governments seeking a bigger share of mining revenues and global mining companies which have invested billions of dollars in the region and now face a new set of game rules. It could also deter further foreign investments, given the unpredictability of the West African juntas.
