Canada’s Barrick Gold announced on Monday that it may need to stop its operations in Mali due to an ongoing dispute. This situation has led to the detention of four of its employees and an arrest warrant issued for the company’s chief executive, Mark Bristow.
The possible halt in operations comes amid tensions between the Malian government and international mining companies. The government is looking to secure a larger share of the revenue from the country’s rich natural resources. Barrick’s Loulo-Gounkoto mine complex is a significant player, employing around 8,000 people and contributing between 5% and 10% to Mali’s GDP.
Previously, Barrick had been in talks with the government to address various claims and disputes, particularly following a demand for $500 million in back taxes. Despite these discussions, the situation has deteriorated, resulting in the rearrest of the four detained employees on November 25 as they await trial.
The tensions escalated further when Mali issued an arrest warrant for Bristow on December 5. Barrick stated that it has yet to find a resolution despite making numerous attempts to negotiate in good faith.
Mali’s government is asking for increased payments from long-standing mining concession holders in accordance with a new mining law enacted in 2023. Additionally, in November, the chief executive of another mining company, Resolute Mining, was detained and the firm later paid $160 million to settle a tax issue that led to his arrest.
Barrick indicated on Monday that its proposals to settle the dispute have been dismissed without meaningful consideration. The company noted that the local operating conditions have sharply declined, with employees being held unjustly and gold shipments being blocked. If shipments remain halted, Barrick warned that it would have no choice but to suspend its operations, which would further threaten Mali’s economic stability.
Barrick characterized the charges against its executives as baseless and expressed concerns about the government’s actions, which include unwarranted tax demands and the arrest warrant for Bristow.
The Malian government has not responded to Barrick’s allegations. An insider mentioned that the blockage of shipments is a critical issue for Barrick and could lead to severe consequences for their operations. Even in past political upheavals, Barrick managed to secure permission to continue its gold shipments.
Bristow emphasized that Barrick is devoted to resolving the matter and highlighted the company’s long-standing partnership with Mali over nearly 30 years. He warned that the recent developments are undermining investor confidence in Mali’s mining sector and could discourage future investments. However, he reiterated Barrick’s willingness for constructive discussions with the government to resolve these challenges while ensuring the continuity of this vital economic sector for Mali.
In trading, Barrick’s stock saw a slight decline of 1.4%, reaching $16.54 in New York on Monday morning.