Barrick Gold faces challenges in Mali due to a new mining code that has increased the government’s share in mining projects. Operations at the Loulo-Gounkoto complex were halted after the government seized gold, and exports have been frozen. Barrick is currently negotiating a settlement, but its financial health is at stake, impacting investor sentiment.
Barrick Gold is currently facing a challenging predicament concerning Mali’s revised mining code, which has implications for its operations at the Loulo-Gounkoto complex. The new regulations, introduced in 2023, have resulted in an increased government share in mining projects, which significantly impacts Barrick’s activities within the country. Since January, Barrick halted its operations following the seizure of three metric tons of gold by the Malian government, resulting in a suspension of gold exports since November.
In summary, Barrick Gold’s struggle with Mali’s new mining code exemplifies the growing trend of governments increasing control over natural resources. This situation not only affects Barrick’s financial health but also serves as a cautionary tale for international mining firms, emphasizing the necessity for adaptable strategies amidst evolving regulatory landscapes. The outcomes of these negotiations will have far-reaching implications for the mining sector as a whole.
Original Source: finimize.com
