Sunday 08 June 2025 - 12:03

Date: 08 June 2025 , 02:05

News ID: 12070

NEWS SERVICE: MINES and MINERALS

Mines and Minerals

Barrick’s Loulo-Gounkoto mine faces more legal uncertainty in Mali

me-metals: A Malian court has once again postponed a ruling on whether to place Barrick Mining’s (TSX: ABX; NYSE: B) Loulo-Gounkoto gold complex under provisional administration, delaying the hearing until June 12.

According to me-metals cited from mining.com, This marks the fourth adjournment in the ongoing legal battle between the Canadian mining giant and Mali’s military-led government, centering on disputes over taxation and control of the mine.

Background

The conflict began in 2023 when Mali introduced a new mining code that increased taxes and expanded the government’s stake in mining operations.

Barrick has resisted transitioning to this new code, arguing that its existing agreements should remain legally binding.

In November 2024, Malian authorities blocked Barrick’s gold exports and seized approximately three tonnes of gold, citing alleged unpaid taxes.

The situation escalated further with the detention of four Barrick employees and the issuance of an arrest warrant for its CEO Mark Bristow on charges including money laundering and financing of terrorism. The company rejects all allegations.

In response to the Malian government’s actions, Barrick has sought intervention from the World Bank’s arbitration tribunal, the International Centre for Settlement of Investment Disputes (ICSID).

The company has requested “provisional measures” to halt Mali’s efforts to place the mine under provisional administration while arbitration is ongoing.

Barrick maintains that the government’s actions are without legal basis and undermine the principles of due process and mutual respect that should govern partnerships between sovereign states and long-term investors.

Talks are stymied by the regime’s lack of mining expertise, CEO Mark Bristow told The Northern Miner in a recent interview.

The suspension of operations at Loulo-Gounkoto since January 2025 have had significant financial repercussions for Barrick. The company is incurring approximately $15 million per month in maintenance and salaries while losing an estimated $1.24 billion annually in revenue due to the halt in production.

Consequently, Barrick has removed Loulo-Gounkoto from its production forecasts until at least 2028.

Following the ruling postponement, shares of Barrick gained 0.6% in New York, giving the company a market capitalization of approximately $35 billion.

source: mining.com

Barrick mining Mine CEO