By: Creamer media

The Toronto-based gold miner said it remained committed to finalising an agreement that was fully negotiated with Mali’s Ministry of Finance in February, but accused a “small group of individuals” of blocking the deal for political or personal interests.

The government has failed to sign the agreement despite Barrick already having paid $85-million last year as part of ongoing negotiations.

In a statement on Wednesday, Barrick warned that Mali risked “the viability of one of its most strategic mining assets”, citing an “escalation of actions” by the authorities. These actions include the continued detention of its local employees, the suspension of gold shipments, and, most recently, the closure of Barrick’s Bamako office. The government has also threatened to place the Loulo-Gounkoto mine under provisional administration unless the mine is reopened and tax payments are made.

Mali has been blocking gold exports from Barrick since November, yet continues to demand tax payments on revenue that the company says it cannot realise owing to the export ban.

Barrick, which continues to pay wages and support contractors despite the halt in operations, described the situation as “not sustainable”.

Tensions between Barrick and Mali have been simmering since 2023, when the West African nation introduced a new mining code aimed at increasing State participation in resource projects. Disagreements over the implementation of the code and tax liabilities have since strained relations, with operations at Loulo-Gounkoto suspended since January.

Earlier this week, Reuters reported that authorities had shuttered Barrick’s Bamako office. While the Loulo-Gounkoto mine remains intact, workers in the capital have been denied access to the building.

ASSET AT RISK

The Loulo-Gounkoto complex is one of Mali’s largest gold producers and key to the country's economy. "The long-term viability of one of Mali’s most strategic mining assets and a key contributor to the national economy is at risk. Barrick brings the unique expertise required to successfully operate this world-class mine. In addition, four innocent Malian citizens continue to be deprived of their freedom, without any justification nor prospect for a quick solution."

“Barrick remains ready to honour the [February] agreement envisioned by both partners and stands prepared to immediately restart production," the company said. Doing so, it added, would unlock significant tax and royalty flows for Mali’s national budget.

The miner urged Mali to act in the best interest of its economy and people. “The consequences of the government’s continued inaction are serious both from an economic and human angle.”

While negotiations between the two parties continue, the timeline for a resolution remains uncertain.

Barrick stressed that it is "prepared to pursue international arbitration and legal remedies against the government and any individuals or entities, acting in bad faith".

“Barrick urges the government of Mali to act now in the interest of its people and the national economy by concluding the agreement which stands ready to be implemented,” the company said.