A courtroom drama in Mali unfolded recently as a hearing regarding the fate of Barrick Mining’s Loulo-Gounkoto mining complex was set to determine if provisional administration should be imposed. This high-stakes legal battle, originally scheduled for Thursday, has now been pushed back to May 22, causing further suspense and uncertainty.
The dispute between Barrick Mining, formerly known as Barrick Gold, and the Malian government dates back to 2023 when disagreements arose over the enforcement of a new mining code. This updated legislation not only increases taxes but also grants Mali’s government a more substantial stake in gold mines within its borders.
According to reports from TimesLIVE, tensions have been escalating due to Mali’s military government’s assertive stance on boosting revenue from the mining sector. The authorities argue that existing agreements with foreign multinationals are unjust and insist on compliance with their revised terms to continue operations in the mineral-rich nation.
In response, Barrick Mining asserts its significant contributions to Mali’s economy spanning two decades. The company alleges that the government has continuously altered its demands, including unreasonable financial requests and detaining its executives as leverage—a move perceived as coercion tactics by the corporation.
Interestingly, while most multinational mining entities operating in Mali have acquiesced to the new mining regulations, Barrick Mining stands firm against what it views as unjust treatment. The Australian company Resolute Mining found itself entangled in a similar situation until an agreement was reached following the detention of its chief executive for over a week.
The latest twist in this saga involves Bamako’s Tribunal de Commerce court entertaining a plea from Mali seeking provisional administration for the Loulo-Gounkoto mines—a strategic move aimed at resuming suspended operations at the complex. If granted, this request would significantly escalate the conflict between Mali and Barrick Mining.
As reported by TimesLIVE, operations at the mines came to a standstill in mid-January after approximately three metric tons of gold valued at around $317 million were seized by the government due to alleged non-compliance with tax obligations. Subsequently, all gold exports by Barrick were blocked since early November pending resolution of these issues.
In an earnings update on May 7th, Barrick disclosed receiving a notice threatening provisional management unless mine operations resumed swiftly—an ultimatum contingent upon lifting export restrictions imposed by Mali. Negotiations for a memorandum of understanding are underway as both parties strive to find common ground amid mounting tensions.
CEO Mark Bristow revealed that previous attempts at reaching consensus had faltered despite coming close on three occasions—underscoring the complexity and sensitivity surrounding this protracted dispute.
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Attribution link: For more details on this developing story about tensions surrounding Mali’s Loulo-Gounkoto mines involving Barrick Mining and local authorities according to TimesLIVE [SOURCE].
