Barrick Gold is committed to reaching a favorable resolution with the Malian government regarding its Loulo-Gounkoto mining complex amid disputes over a new mining code. Operations have been suspended due to a government seizure of gold stock, with an agreement signed but pending approval. Salaries for employees have been maintained despite ongoing financial delays with suppliers.
Barrick Gold Corporation reaffirms its dedication to achieving a mutually beneficial resolution concerning its operations in Mali, as stated by the Chief Operating Officer for Africa and the Middle East in a memo addressed to staff, which was reviewed by Reuters. The company has been in a prolonged dispute with the Malian government, stemming from a new mining code implemented in 2023 that mandates a larger share of profits to the state from Barrick’s operations at the Loulo-Gounkoto gold mining complex.
On January 13, Barrick was compelled to suspend its mining operations in Mali following the seizure of approximately three metric tons of gold by the government. The Malian authorities have obstructed the company’s gold exports since November of the previous year. Reports indicate that an agreement to resolve the dispute was signed by Barrick on February 19, pending formal approval by the government.
Despite the absence of substantial developments since the agreement, delays in finalizing the deal have been noted. Individuals close to the discussions assert that previous agreements between the Malian government and other mining firms similarly experienced protracted timelines for ratification. In the memo provided to staff on Saturday, Mr. Sebastiaan Bock communicated that there had been no significant updates, emphasizing that all non-essential operations are still on hold.
In light of the operational suspension, Barrick has continued to disburse salaries and annual bonuses to its staff. Nevertheless, one supplier associated with the complex reported to Reuters in early March that Barrick is currently facing a financial challenge, being two months in arrears regarding payments.
In summary, Barrick Gold Corporation remains committed to resolving its issues with the Malian government amid ongoing disputes over mining regulations. Despite the challenges, the company has maintained employee salaries and bonuses while attempting to finalize an agreement to restore its operations in Mali. The situation remains dynamic as both parties navigate the complexities of the new mining code and its implications for Barrick’s future in the region.
Original Source: www.mining.com
