By Robb M. Stewart
Barrick Gold said it would be forced to suspend its operations in Mali if shipments in the country remain blocked amid a dispute with the African nation's government.
The Canadian miner said local operations in Mali have deteriorated significantly, with gold shipments blocked and several employees imprisoned.
Barrick in a news release Monday said it has engaged with the Malian government and its external advisers over the past 12 months, addressing requests for an increased share of the economic benefits generated by the Loulo-Gounkoto mining operations near the border with Senegal.
The company said Mali's government, which owns a 20% stake in the Loulo-Gounkoto complex, has rejected proposals toward a memorandum of agreement that included significant concessions.
Mali's government, which took power in a 2021, has sought to take a greater share of the revenue generated by the country's gold-mining industry. In mid-2023 the government announced plans to overhaul the country's mining legislation. A new mining code was adopted requiring local content in the mining sector, though existing mining titles were to remain subject to existing terms.
Barrick said that 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.
The Malian government previously said Barrick hadn't honored its commitments made under an agreement designed to achieve a more-equitable distribution of mineral-resource exploitation.
On Nov. 25, four Barrick employees at the Loulo-Gounkoto operation were charged and detained pending trial. Barrick said it refutes the charges it didn't specify. The move was accompanied by tax and customs claims and local media reports an arrest warrant was issued against Barrick Chief Executive Mark Bristow. The company has refuted the charges and claims and said the actions raise serious concerns about the misuse of Mali's criminal justice system.
Barrick said that has invested more than $10 billion in Mali over 29 years, and says in 2023 it contributed more than $1 billion to the country's economy. Loulo-Gounkoto is one of Mali's largest taxpayers and employers, with 97% of its 8,000-strong workforce comprising Malian nationals, Barrick said.
Loulo-Gounkoto accounted for about 13% of the almost 4.1 million ounces of gold Barrick produced in 2023.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
December 16, 2024 08:14 ET (13:14 GMT)
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