Barrick Mining has excluded its Mali gold complex from its 2025 production forecast, as tensions rise from a two-year dispute over new mining legislation in Mali, reported Reuters, citing sources.
The Loulo-Gounkoto complex has faced operational delays since January due to actions by Mali’s military-led government, including blocking gold exports, detaining staff and seizing gold stock.
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This development comes amidst negotiations for a new mining contract, with potential revenues exceeding $1bn at risk for both parties.
Mali’s Government, which holds a stake in the complex, has sought court intervention to appoint a provisional administrator, potentially diminishing Barrick’s control over the mines.
Despite the ongoing court case, Mali has offered Barrick a concession by allowing the company to repatriate 20% of its earnings to an international bank account.
However, disagreements persist, particularly regarding the jurisdiction for future disputes. Barrick insists on international arbitration, while Mali prefers domestic court resolution.
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By GlobalDataThe standoff has raised concerns among investors, especially given the possibility of Barrick facing depleted gold reserves if it regains control of the complex.
Barrick’s global revenue has been bolstered by strong gold prices, but the threat of losing the Mali complex looms large.
The company has already initiated international arbitration proceedings against Mali and sought to halt domestic court proceedings, although this request was denied by the World Bank’s arbitration court, the report said.
In the first nine months of 2024, the Mali operations contributed $949m to Barrick’s revenue.
Mali, Africa’s third-largest gold producer, has been renegotiating agreements with other multinational miners, indicating a broader push to revise mining contracts in the country.
