Barrick Gold has provided an update on its operations in Mali, threatening to suspend operations if the ongoing blockade of its gold shipments persists.
The mining giant has been trying to negotiate a new mining code with Malian authorities for more than a year without success.
The company emphasised its constructive engagement with the government, which holds a 20% stake in the Loulo-Gounkoto complex. However, the company’s proposals for a memorandum of agreement have been consistently rebuffed.
Barrick Gold has highlighted that the majority of economic benefits from the Loulo-Gounkoto mine have been received by the Malian Government.
Despite the company’s significant concessions, its efforts to reach an agreement have not been meaningfully considered.
The government’s insistence on applying the 2023 Mining Code to Loulo-Gounkoto, an existing operation that should be exempt, has further escalated tensions.
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By GlobalData
The operational environment in Mali has seen a marked decline, with unwarranted imprisonment of Barrick employees and the halting of gold exports.
The company warns that continued shipment blockades will force it to cease operations, which could gravely affect Mali’s economy.
Barrick Gold’s local management has faced unfounded legal challenges since 25 November, with several senior members detained on baseless charges.
These legal issues extend to the highest levels of Barrick’s leadership, with reports of an illegitimate arrest warrant issued for the company’s president and CEO.
The misuse of the criminal justice system is a growing concern for Barrick Gold, as these incidents follow previous detentions of the company’s management in September and similar troubling events involving other mining companies in Mali.
Barrick president and CEO Mark Bristow said: “Barrick has been a committed partner to Mali for nearly three decades, delivering significant value to stakeholders and communities.
“Recent developments further erode investor confidence in Mali’s mining sector and will deter future investment.
“Nonetheless, in view of our long-standing commitment to the people of Mali, we remain open to constructive engagement with the government to resolve these issues while protecting the viability of this key economic driver for Mali.”
Barrick Gold has invested more than $10bn (C$14.28bn) into Mali over three decades, with its mining operations accounting for 5–10% of the nation’s gross domestic product each year.
In 2023, the company alone added more than $1bn to the local economy. The Loulo-Gounkoto site stands out as one of the largest contributors to taxes and employment in Mali, employing a workforce comprised of 97% Malian citizens.
