A Mali court postponed until May 22 a hearing on whether to place Barrick Mining’s (TSX: ABX) Loulo-Gounkoto complex under provisional administration, escalating a months-long standoff between the Canadian mining giant and Mali’s military government.
The dispute centers on Mali’s 2023 mining code that raises taxes and increases the government’s share in gold operations. Mali has blocked Barrick’s gold exports since November and seized about 3 metric tons of gold worth $317 million, accusing the company of tax violations.
Barrick denies wrongdoing and says it can only resume operations when export restrictions are lifted. The company has suspended mining since January.
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According to company statements, Barrick continues to work toward resolving differences with the Malian government while operations remain halted.
The government’s court request aims to restart operations at the idled facility. If approved, Mali would appoint new management to run the mine, where the state already holds a 20% stake.
Barrick says it has invested over $10 billion in Mali during nearly three decades, with its mines accounting for 5-10% of Mali’s GDP. The company contributes more than $1 billion annually to Mali’s economy.
The Loulo-Gounkoto complex, one of the world’s largest gold producers, contains reserves of approximately 7.2 million ounces of gold. Despite the shutdown, Barrick spends $15 million monthly maintaining the site, according to Reuters reporting.
Reuters reports that Barrick and Mali have nearly reached agreement three times during negotiations. Both sides are working on a memorandum of understanding to resolve the dispute.
Most other international mining companies in Mali have accepted the new mining code. Australia’s Resolute Mining reached an agreement after authorities detained its chief executive for over a week.
Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
