Barrick Gold’s Dispute with Mali Remains Unresolved as Talks Stall
Negotiations between Barrick Gold (NYSE:GOLD)(TSX:ABX) and the Malian government over a prolonged dispute regarding payments from the country’s largest gold mine have been suspended without a resolution.
Mali is demanding a settlement of 125 billion CFA francs ($197 million) from the Canadian mining giant, Bloomberg News reported, citing local sources.
Additionally, the government insists that Barrick comply with its revised mining code, which increases the state’s share of mining revenues and removes tax exemptions.
The Loulo-Gounkoto gold complex, developed under CEO Mark Bristow’s leadership at Randgold before its 2018 merger with Barrick, plays a crucial role in Mali’s economy.
However, Barrick halted operations at the site in January after Malian authorities seized gold stocks and transported them by helicopter to the state-owned Banque Malienne de Solidarité (BMS) in Bamako. Since December, the government—holding a 20% stake in Loulo-Gounkoto—has restricted gold exports from the mine.
Last week, Bristow expressed optimism about the discussions, stating that progress was being made, albeit slower than expected. However, Barrick has not responded to a request for comment from MINING.COM.
Mali’s military-led government has introduced stricter regulations on the mining sector, pushing foreign companies to renegotiate agreements.
Several miners, including Resolute Mining (ASX, LON: RSG), B2Gold (TSX: BTO)(NYSE-A: BTG), and Allied Gold (TSX: AAUC), have already signed new deals with the government.
Barrick has invested over $10 billion in Mali over the past 29 years, contributing between 5% and 10% of the nation’s GDP annually.
In 2023 alone, the company injected over $1 billion into the local economy. The Loulo-Gounkoto complex remains a major employer, with 97% of its 8,000 workers being Malian nationals. According to Barrick, more than 70% of the mine’s economic benefits have directly supported the Malian state.
