Barrick Gold Seeks Resolution with Mali Over Mining Dispute

Barrick Gold is committed to resolving its dispute with Mali over the new mining code affecting its operations. The company temporarily suspended mining due to government action on gold stock and export blockages. An agreement has been signed but is pending approval, with operations paused and staff salaries maintained throughout the conflict.

Barrick Gold has reaffirmed its dedication to achieving a mutually beneficial resolution with the Malian government regarding the ongoing dispute over its mining assets. This assertion was made by the company’s Chief Operating Officer for Africa and the Middle East in a memo revealed to Reuters. The disagreement stems from the implementation of Mali’s new mining code, which increases the state’s share in Barrick’s Loulo-Gounkoto gold mine.

Due to the situation, Barrick temporarily suspended mining operations after Mali’s government confiscated approximately three metric tons of gold stock from the facility. The government had also obstructed the company’s gold exports since early November, compounding the challenges faced by Barrick in the region. Reports from February indicate that Barrick had entered into an agreement aimed at resolving the dispute, pending formal state approval.

Although progress has been reported, the finalization of this agreement is taking longer than anticipated. In light of this delay, all non-critical operations remain on pause, as stated by Sebastiaan Bock in the memo to staff. Notably, despite the operational suspension, employee salaries and bonuses continue to be honored, though concerns have arisen regarding overdue payments to suppliers.

In summary, Barrick Gold is committed to resolving its disputes with the Mali government regarding the new mining code and the management of its gold mining complex. The company has temporarily paused operations as it seeks to finalize an agreement, while still maintaining staff salaries. Moving forward, it will be essential for both parties to expedite negotiations and reach a resolution to ensure the continuation of mining activities.

Original Source: www.mining.com