Barrick Gold Corporation, one of the largest gold producers in the world, published a press release on Monday, January 6, 2025 warning of growing disruptions to its operations at the Loulo-Gounkoto mining complex in Mali.
The Malian state, in an unprecedented act, imposed a seizure conservatory of gold stocks present on the Loulo-Gounkoto mining site and prohibits their export. This dispute, which Barrick describes as “ unjustified », threatens the local economy and raises serious questions about the future of the partnership between the multinational and Mali.
Mark Bristow, CEO of Barrick, expressed deep concern, saying the lack of a quick solution could result in a temporary suspension of activities, a decision with potentially disastrous consequences for Mali’s 8,000 employees, local suppliers and the national economy .
The Malian state accuses Barrick Gold of not respecting certain of its financial and contractual commitments. Among the grievances put forward are disputes over taxes, profit distribution and Barrick’s contribution to the country’s socio-economic development. Mali is also seeking to increase its share of revenues generated by the Loulo-Gounkoto complex, a site which represents a significant portion of national gold production.
These demands are part of a broader strategy to strengthen the economic sovereignty of Mali, a country whose natural resources constitute an essential wealth. In response, the Malian authorities implemented coercive measures, including precautionary seizure, to put pressure on Barrick.
In its statement, Barrick strongly disputes the accusations and calls for a resolution through dialogue. The company emphasizes that the precautionary seizure goes against international dispute resolution mechanisms, in particular those of the International Center for Settlement of Investment Disputes (ICSID), where arbitration proceedings have been initiated.
-At the same time, Barrick is working to negotiate a memorandum of understanding with the Malian government to redefine the terms of the partnership and find a mutually beneficial solution. Mark Bristow also denounced the arrest of several Malian employees, calling these actions unjustified measures, while reaffirming the company’s commitment to the safety and well-being of its staff.
Despite these tensions, 2024 was a stable year for Barrick Gold, with notable performances both in Mali and globally. For the first quarter of 2024, the giant recorded production of 940,000 ounces of gold (29 tonnes) and 40,000 tonnes of copper. Gold sales were made at an average price of $2,070 per ounce, a record supported by rising world prices. For the second quarter of 2024, it maintained its production at 948,000 ounces of gold and 43,000 tonnes of copper, with a net profit of $370 million, up 25% from the first quarter. As for the third quarter of 2024, its production fell slightly reaching 943,000 ounces, but copper production at 48,000 tonnes saw an increase. Barrick confirmed its annual forecast, targeting between 3.9 and 4.3 million ounces of gold.
The Loulo-Gounkoto complex represents an essential contribution to this performance. In Mali, this mine is not only a major source of tax revenue, but also a driver of local economic development through employment and community projects financed by Barrick.
For Barrick, this standoff could represent a decisive test of its commitment to Mali, where it has operated for almost three decades. For the Malian State, the resolution of this conflict will be decisive in maintaining the confidence of foreign investors while asserting its economic sovereignty.
MD/te/Sf/APA
Related News :