Barrick Gold is working on a resolution with Mali regarding a mining dispute. Despite reaching an agreement on February 19, delays in approval are occurring. Mining operations are currently paused, but employee salaries are secured, with overdue payments reported to suppliers.
Barrick Gold is actively working towards a resolution with the Malian government regarding a dispute over its assets, as stated by Sebastiaan Bock, the company’s Chief Operating Officer for Africa and the Middle East. This ongoing issue, which began in 2023, centers around Mali’s new mining code that increases the state’s share in Barrick’s Loulo-Gounkoto gold mining complex.
On January 13, Barrick suspended its mining operations in Mali following the government’s seizure of approximately three metric tons of gold stock. Since November 2023, the government’s actions have impeded Barrick’s gold exports, leading to significant operational challenges for the company.
According to reports from February 19, Barrick reached an agreement intended to resolve the dispute, pending formal approval from the Malian government. While progress has been reported, it appears that finalizing the agreement is taking longer than anticipated, a sentiment echoed by a source familiar with the situation.
In a recent memo, Bock indicated that there were “no major updates at this stage” and reminded staff about the continuation of temporary pauses in all non-critical operations. Despite the suspension, salaries and annual bonuses for employees have been maintained, although one supplier mentioned overdue payments totaling two months.
In summary, Barrick Gold is committed to negotiating a resolution with the Malian government concerning its operations amidst a challenging mining code dispute. While an agreement is on the table, delays in formal approval are not uncommon. The company continues to ensure employee support amid operational suspensions, though financial concerns with suppliers have been noted.
Original Source: money.usnews.com
