Barrick Gold’s Commitment to Resolving Dispute with Mali Government

Barrick Gold is committed to resolving its dispute with the Malian government regarding new mining code regulations, which has led to operational suspensions. The company has reached an agreement, awaiting formal approval, while continuing to pay staff despite overdue supplier payments.

Barrick Gold has affirmed its commitment to resolving the ongoing dispute with the Malian government regarding its assets, as stated by the Chief Operating Officer for Africa and the Middle East in a memo. The disagreement, which dates back to 2023, centers on the enforcement of Mali’s new mining code, which allocates a larger share of profits to the state from Barrick’s Loulo-Gounkoto gold mining complex.

The situation escalated on January 13 when Barrick was forced to suspend its mining operations after the government seized approximately three metric tons of gold stock. Since early November, the Malian government had also hindered the company’s exports of gold.

On February 19, reports indicated that Barrick had reached an agreement intended to resolve the dispute, pending formal approval from the state. Although the agreement is in progress, insiders note that it is taking longer than anticipated to finalize. It has been mentioned that past agreements with other mining companies in Mali similarly experienced delays before being ratified by the government.

In the memo, Sebastiaan Bock informed staff that there are currently no significant updates on the issue. He reminded them that all non-critical operations continue to be on hold until further notice. Despite the operational suspension, Barrick has continued to pay staff salaries and annual bonuses. However, reports suggest that the company is experiencing overdue payments of two months to one of its suppliers.

In conclusion, Barrick Gold is actively seeking to resolve its dispute with the Malian government, which arose from updated mining regulations. While an agreement has been reached, formal approval is still pending, causing delays in operational resumption. The company remains committed to its employees despite the suspension of operations.

Original Source: money.usnews.com