Barrick and Mali fail to reach deal, talks halted
Negotiations between Barrick Gold (NYSE:GOLD)(TSX:ABX) and the Malian government to end a long-dragged dispute over payments from the country’s largest gold mine have been suspended without a resolution.
Mali is seeking a settlement payment of 125 billion CFA francs ($197 million) from the Canadian mining giant, according to Bloomberg News, which cited local sources. The government is also demanding Barrick’s compliance with the country’s new mining code that increased the state’s share of mining revenues and eliminated tax exemptions.
The Loulo-Gounkoto gold complex, developed during chief executive Mark Bristow’s tenure as CEO of Randgold before its acquisition by Barrick in 2018, is a cornerstone of Mali’s economy.
The Toronto-based miner halted operations at its Loulo-Gounkoto complex in Mali in January, following the seizure of gold stocks, which were subsequently transported via helicopter to the state-owned Banque Malienne de Solidarité (BMS) in Bamako. Since December, the Malian government, which holds a 20% stake in Loulo-Gounkoto, has restricted gold exports from the site.
Last week, Bristow had expressed optimism about the talks, noting the company was “making progress”. He also acknowledged that developments were not advancing as swiftly as anticipated.
Barrick did not reply to a request for comment from MINING.COM.
Tightening grip
In recent years, Mali’s military leadership has introduced sweeping reforms to the mining sector, adopting a stricter approach to foreign investors. Besides Barrick, other companies — including Resolute Mining (ASX, LON: RSG), B2Gold (TSX: BTO)(NYSE-A: BTG) and Allied Gold (TSX: AAUC) — have inked new agreements with the junta.
Over the past 29 years, Barrick has invested more than $10 billion in the country, contributing between 5% and 10% of Mali’s GDP annually. In 2023 alone, the miner injected over $1 billion into the local economy.
The mining complex is also a significant taxpayer and employer, with 97% of its 8,000-strong workforce comprising Malian nationals. According to Barrick, over 70% of the economic benefits generated by the complex have gone directly to the Malian state.
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3 Comments
Scott Desmond
Barrick are losing a lot of credibility from what I saw at another site North Mara it’s definitely a different story to be told
Fred
The Mining community world-wide, particularly this of Occidental origin, are vexed by protracted mining developments projects; projects of which mandate economic certainties, both for various stage mining developments, and too, to enable profitability. Readers would be wise to remember this. The average western-based mine opening these years takes some 3 decades to develop from deposit identification to actual opening of mines. Therein, whenever another flippant government finds itself in power, it would be a very poor precedent for a mining company the size of Barrick to “cave in” to renewed mining desired agenda as such proposed by the new military government in Mali. Many other banana republics are watching this issue & would immediately emulate such tactics. The entire mining industry suffers from a funding drought. We who invest millions in this industry, worry that continued dis-incentives for investing in any mining form will be further discouraged. All humanity will pay dearly if this issue in Mali results favourably for Mali; even the citizens of Mali have no idea how essential Barrick’s financial support has been for the nation. Resource nationalisation isn’t going to save humanity in the years ahead; instead lead to suffering by millions of souls.
Michek Jebrak
In 1997, I met with Mark Bristow to sell the Malian Gold Syndicate (Mali-BRGM) gold properties, including Loulo, to Randgold. Exploration work had been very low due to a lack of capital in France. He was already fantastically enthusiastic. After Sadiola, he largely built Mali’s gold mining industry. The Malian government should honor him rather than sue him!