The ongoing dispute between Canadian miner Barrick Gold and the Malian Government has resulted in staff layoffs by at least four subcontractors at the company’s Loulo-Gounkoto complex in Mali, reported Reuters, citing documents and people familiar with the matter.
Accusations of unmet tax obligations by Barrick Gold have led to the halt of the company’s gold exports since early November last year.
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Operations at the Loulo-Gounkoto complex have been suspended since January following the seizure of approximately three tonnes (t) of gold by the government.
Boart Longyear subsidiary BLY Mali communicated its liquidation in a letter, citing the suspension of its contract with Barrick on 25 January as the reason for its “irremediably compromised situation”. The company reported having 98 employees at the complex as of March.
ETASI, a heavy equipment rental company, announced in a letter that it would suspend all personnel, with 68 employees on its payroll as of last month.
Similarly, a work-placement company representing metal construction operator ATC has issued layoff notices to its workers following the end of a three-month temporary work stoppage, with employee numbers dropping from 45 in January to just four in March.
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By GlobalDataFurthermore, MAXAM, a civil explosives subcontractor, is expected to announce a temporary work stoppage for most of its staff in Mali, potentially affecting more than 120 employees, despite internal documents listing only 69 as of March.
SGS, based in Geneva, is also facing a temporary work suspension, with its future after the three months ending next week remaining uncertain.
The dispute between Barrick and the Malian Government escalated last week when Malian authorities closed Barrick’s office in Bamako over alleged tax non-payment.
Despite the office closure and the suspension of operations at the complex, Barrick employees have continued to receive their salaries.
Nearly 40 staff from the Loulo-Gounkoto complex are being temporarily transferred to Barrick’s Kibali mine in the Democratic Republic of Congo, with a total of 100 Malian staff identified for relocation.
In February, Barrick signed an agreement aimed at resolving the dispute but it awaits approval and execution by the Malian Government.
