Barrick and Mali fail to reach deal, talks halted

me-metals: Negotiations between Barrick Gold (NYSE:GOLD)(TSX:ABX) and the Malian government to end a long-dragged dispute over payments from the country’s largest gold mine have been suspended without a resolution.

According to me-metals cited from mining.com, The Loulo-Gounkoto gold complex, developed during chief executive Mark Bristow’s tenure as CEO of Randgold before its acquisition by Barrick in 2018, is a cornerstone of Mali’s economy.

Sources cited by Bloomberg revealed that Mali is seeking a settlement payment of 125 billion CFA francs ($197 million) from the Canadian mining giant. The government is also demanding Barrick’s compliance with the country’s new mining code, which came into effect in August 2023. The revised regulations increase the state’s share of mining revenues and eliminate tax exemptions previously granted to mining companies.

The Toronto-based miner halted operations at its Loulo-Gounkoto complex in Mali in January, following the seizure of gold stocks, which were subsequently transported via helicopter to the state-owned Banque Malienne de Solidarité (BMS) in Bamako. Since December, the Malian government, which holds a 20% stake in Loulo-Gounkoto, has restricted gold exports from the site.

Last week, Bristow had expressed optimism about the talks, noting the company was “making progress”. He also acknowledged that developments were not advancing as swiftly as anticipated.

Barrick did not reply to a request for comment from MINING.COM.

In recent years, Mali’s military leadership has introduced sweeping reforms to the mining sector, adopting a stricter approach to foreign investors. Besides Barrick, other companies — including Resolute Mining (ASX, LON: RSG), B2Gold (TSX: BTO)(NYSE-A: BTG) and Allied Gold (TSX: AAUC) — have inked new agreements with the junta.

Over the past 29 years, Barrick has invested more than $10 billion in the country, contributing between 5% and 10% of Mali’s GDP annually. In 2023 alone, the miner injected over $1 billion into the local economy.

The mining complex is also a significant taxpayer and employer, with 97% of its 8,000-strong workforce comprising Malian nationals. According to Barrick, over 70% of the economic benefits generated by the complex have gone directly to the Malian state.

source: mining.com

CEO CFA Gold Mine Gold mine