Barrick Gold Facing Mali Export Restrictions, May Halt Mine Operations

Major miner Barrick Gold (TSX:ABX,NYSE:GOLD) remains unable to export gold from its Loulo-Gounkoto mining complex in Mali due to ongoing restrictions imposed by the country’s government.

In a Monday (January 6) press release, the company said the situation has escalated further with the issuance of an interim attachment order on the existing gold stock at the site, halting exports and impacting daily operations.

Mark Bristow, Barrick’s president and CEO, said the restrictions could force the company to suspend operations at the site if the dispute is not resolved in the coming week. He emphasized that Barrick views the attachment order as unjustified and contrary to dispute resolution processes previously agreed upon with Mali’s government.

Barrick is seeking arbitration through the International Center for the Settlement of Investment Disputes.

“In parallel, Barrick continues its efforts to reach an agreement with the Mali government on a memorandum of agreement to resolve the existing disputes, redefine the partnership’s future and increase the State’s share of benefits from the Loulo-Gounkoto complex,” Bristow added in the company’s announcement.

The mining complex, one of Barrick’s key operations in West Africa, employs approximately 8,000 people. Bristow indicated that suspending operations would be a last resort, but necessary to manage ongoing disruptions.

Barrick is engaging with the Malian government to reach an agreement that redefines their partnership. Discussions are also focused on increasing Mali’s share of the operation’s economic benefits via a memorandum of understanding.

The situation has been further complicated by the detention of several of Barrick’s Malian employees. According to the company, the charges against these workers are unfounded.

Bristow reiterated that securing the release of the detained employees and ensuring their safety remains a top priority.

Moving forward, the company will continue to pursue legal and diplomatic avenues to resolve its issues in Mali, while safeguarding the interests of its workforce and stakeholders.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.