A court in Mali is scheduled to hold a hearing on Thursday to evaluate a request from the country’s military-led government to reopen the Loulo-Gounkoto gold mine under temporary new management. The mine, operated by a Canadian company, has been inactive since January due to ongoing disagreements over taxes and ownership.
According to a court representative, the hearing will involve initial filings and case preparation. Multiple sources have indicated that a judge may soon decide whether to place the mine under interim management appointed by the state.
The mining company disclosed in a recent earnings update that it had received a government warning on April 17. The notice stated that if operations did not resume by April 20, the government would move forward with imposing provisional management.
Tensions between the mining firm and Mali’s government have been growing since last year, following the implementation of a revised mining code. The updated regulations increase tax burdens and expand the state’s ownership share in mining projects.
The company has insisted that mining activity cannot resume until restrictions on exporting gold are lifted. Mali halted the mine’s gold exports in early November and later seized around 3 metric tons of gold—valued at approximately $317 million at current market rates—citing unpaid taxes as the reason.
With a 20% ownership stake in the operation, the Malian government has formally petitioned the court to restart the mine under provisional oversight. If the request is granted, a new administrative body would be appointed to manage and reopen the mine.
Representatives from both the mining company and Mali’s Ministry of Mines have not yet commented on the situation.
This legal move comes amid broader negotiations aimed at settling the ongoing conflict. The mining company’s chief executive recently stated that both parties have nearly finalized a resolution on several occasions.
Earlier this year, an agreement was reportedly reached under which the company would pay 275 billion CFA francs (roughly $438 million) in exchange for the release of four detained employees and the return of the seized gold. However, the deal stalled after the government claimed that the company had signed the incorrect version of the document. Another source indicated that the government is seeking additional compensation, reportedly tied to unpaid taxes since the suspension of operations.
In December 2024, the mining firm initiated international arbitration proceedings to contest the government’s actions. A legal expert familiar with the situation suggested that the move to appoint provisional management could be viewed as an effort to seize control of the company’s assets.
