Barrick Gold is seeking a resolution with the Malian government regarding its assets affected by a new mining code. Operations have been suspended due to gold seizures, but the company is ensuring employee salaries continue. Delays in finalizing an agreement have been noted.
Barrick Gold remains dedicated to resolving a dispute with the Malian government regarding its assets, according to Sebastiaan Bock, Barrick’s Chief Operating Officer for Africa and the Middle East. This commitment was expressed in a memo shared with Reuters, emphasizing the aim for a mutually beneficial outcome. The conflict stems from the implementation of Mali’s new mining code, which mandates a larger share for the state from the Loulo-Gounkoto gold mining complex.
The situation escalated on January 13, 2023, when Barrick was compelled to halt mining operations in Mali after the government seized approximately three metric tons of gold stock. The government had also obstructed the company’s gold exports since early November of the previous year. As reported on February 19, Barrick signed an agreement to resolve the matter, pending formal approval from the Malian state.
Although there have been no significant issues post-agreement, the finalization process is progressing slowly, as indicated by an insider close to the situation. Historical context shows that previous agreements with other mining firms in Mali have also faced delays during governmental approval processes. In Bock’s latest memo to staff, he stated that there are “no major updates at this stage” and reiterated that non-critical operations will remain paused until further notice.
Despite the suspension of operations, Barrick has ensured that salaries and annual bonuses for employees are upheld. However, concerns have been raised regarding the company’s financial obligations, as one supplier noted two months of overdue payments from Barrick.
In summary, Barrick Gold is actively working to resolve a dispute with the Malian government over its mining operations, particularly regarding compliance with a new mining code. Although an agreement has been signed, delays in government approval have caused operational suspensions. The company is maintaining employee remuneration despite these challenges, while also facing financial pressures from overdue payments to suppliers.
Original Source: money.usnews.com
