Barrick Gold is committed to resolving its dispute with the Malian government over asset ownership influenced by a new mining code. The company temporarily suspended operations following the seizure of gold and is waiting for formal approval of a settlement agreement. Despite ongoing issues, salaries and bonuses for employees remain unaffected, though overdue supplier payments are a concern.
Barrick Gold asserts its commitment to resolve a dispute with the Malian government regarding its assets in the country. This declaration comes from Sebastiaan Bock, the Chief Operating Officer for Africa and the Middle East, who noted the company’s efforts to achieve a mutually beneficial resolution through a company memo viewed by Reuters.
The conflict between Barrick and the Malian government arose in 2023 due to the implementation of a new mining code that allocates a larger share of Barrick’s Loulo-Gounkoto gold mining complex to the state. Following the government’s seizure of approximately three metric tons of gold stock from Barrick’s operations in January 2023, the miner announced a temporary suspension of its mining activities.
Reports indicate that Barrick agreed on February 19 to a settlement to resolve the ongoing dispute, pending formal approval from the state. Although there have been no significant developments recently, the finalization of this agreement is taking longer than expected. Previous agreements with other mining firms in Mali have also experienced similar delays.
In his memo, Sebastiaan Bock stated that there are currently no major updates regarding the situation and reiterated that all non-critical operations will remain temporarily suspended until further notice. Despite the operational halt, Barrick has continued to provide salaries and annual bonuses to its employees. However, one supplier claimed that payments overdue to the complex have accumulated to two months.
In conclusion, Barrick Gold is actively seeking a resolution to its ongoing dispute with the Malian government, emphasizing its commitment to finding a mutually beneficial solution. The challenges stem from a newly adopted mining code resulting in greater state ownership of Barrick’s assets. Although an agreement has reportedly been reached, the finalization process is lagging, continuing to affect the company’s operational capacity in Mali.
Original Source: www.mining.com
