Barrick Gold has confirmed it is considering suspending its operations in Mali after ongoing failed talks with the country’s authorities that have left its gold shipments blocked.
The miner said it had previously agreed on a framework to achieve a global resolution of the disputes with the Government of Mali over the Loulo-Gounkoto complex, its Mali property, but to date has been unsuccessful in arriving at a final resolution “despite numerous good-faith attempts” of negotiation as well as its willingness to compromise “beyond its legal rights” for a deal.
“Barrick has engaged constructively with the Malian government and its external advisors over the past 12 months, addressing their requests for an increased share of the economic benefits generated by Loulo-Gounkoto. Notably, the government, a 20% shareholder, has to date received the majority of these benefits,” the company said.
“Barrick’s proposals toward a memorandum of agreement, which included significant concessions, have not been meaningfully considered and have been rejected by the Government of Mali. Even though the 2023 Mining Code has no application to existing operations such as Loulo-Gounkoto, the government insists on forcing Loulo-Gounkoto under the framework of that code.”
Barrick said local operating conditions have now deteriorated significantly, with employees imprisoned without cause and gold shipments blocked.
“If shipments remain suspended, Barrick will be compelled to suspend operations, further impacting the viability of this critical economic driver for Mali,” officials confirmed.
Over 29 years, Barrick said it has invested more than $10 billion in Mali, with its mines contributing 5% to 10% of the country’s GDP annually. Additionally, Loulo-Gounkoto remains one of Mali’s largest taxpayers and employers, with 97% of its 8,000-strong workforce comprising Malian nationals. To date, the Malian state has received more than 70% of the economic benefits from the complex.
Since November 25, several senior members of Barrick’s Malian management team have been imprisoned on unfounded charges, accompanied by concerning actions such as baseless tax and customs claims and the reported issuance of an illegitimate arrest warrant against Barrick’s President and CEO.
“These actions raise serious concerns about the misuse of the criminal justice system,” officials said. “This [also] follows the earlier detention of Barrick management in September and similar incidents involving senior executives from other mining operators being jailed.”
President and CEO Mark Bristow pointed out that Barrick has been a committed partner to Mali for nearly three decades.
“Recent developments further erode investor confidence in Mali’s mining sector and will deter future investment. Nonetheless, in view of our long-standing commitment to the people of Mali, we remain open to constructive engagement with the government to resolve these issues while protecting the viability of this key economic driver for Mali.”
He additionally stressed that further negotiations need to be mutual, respectful of existing agreements, and aimed at preserving the long-term sustainability of the mining sector in Mali.
Source: barrick.com