Barrick Gold’s Commitment to Resolve Dispute with Mali Government

Barrick Gold is actively working to resolve a dispute with the Malian government over mining rights. The ongoing conflict, initiated in 2023 due to a new mining code, has led to a temporary suspension of operations. Despite payment challenges, the company has maintained employee salaries while awaiting formal approval of a settlement agreement.

Barrick Gold Corporation has stated its commitment to achieving a mutually beneficial resolution with the government of Mali regarding ongoing disputes concerning its assets. This commitment was reiterated by its Chief Operating Officer for Africa and the Middle East in a memo reportedly viewed by Reuters on Saturday. The two parties have been at odds since 2023 over Mali’s new mining code, which allocates a larger share of profits to the state from Barrick’s Loulo-Gounkoto gold mining operation.

Following a government seizure of approximately three metric tons of gold, Barrick announced the suspension of mining operations in Mali on January 13. This seizure, part of broader export restrictions imposed by the government since early November, has significantly impacted the company’s operations. On February 19, reports indicated that Barrick had reached a preliminary agreement to resolve the matter, which was pending formal endorsement by the government.

While progress appears to have been made, the finalization of the agreement is taking longer than anticipated. Sources familiar with the situation suggested that past agreements with other mining entities in Mali faced similar delays. In the company memo, Sebastiaan Bock informed employees that there were “no major updates at this stage” and emphasized that all non-critical operations would remain on pause until further notice.

Despite the operational suspension, Barrick has ensured that salaries and annual bonuses for its staff continue to be paid. However, reports have emerged indicating that Barrick is facing overdue payments to some suppliers, totaling two months, further complicating its financial obligations amid the ongoing dispute.

In summary, Barrick Gold is dedicated to resolving its asset disputes with the Malian government, primarily arising from a new mining code. The company’s mining operations are temporarily halted due to these conflicts, although Barrick continues to support its employees with salary payments. Nevertheless, the finalization of a resolution is taking longer than expected, reflecting the complexities of negotiations, which have been similarly noted in prior agreements with other companies in the mining sector in Mali.

Original Source: money.usnews.com