Barrick opposes bid by Mali government to takeover mine
Barrick Mining Corp. [ABX-TSX, B-NYSE] said it opposes the Mali, West Africa Government’s attempt to take over day to day operations at the company’s Loulo-Gounkoto mine. The company said it has continued to support the workforce in the wake of a dispute with the government.
In its latest press release, Barrick said a ruling by the President of the Barnako Commercial Tribunal following submissions made in May 22 by the company’s Loulo and Gounkoto mines opposing the Malian government’s request to place the mining complex under provisional administration, is expected on June 2, 2025.
On May 8, the government formally submitted its request to the court seeking to impose administration over the site. Barrick said it believes there is no-basis – either in law or in practise – for the day-to-day operations at Loulo-Gounkoto to be handed over to a court-appointed interim administrator. The move follows a preliminary hearing on May 15, 2025, during which the mines were granted the opportunity to respond.
The company said the latest escalation by the Malian government follows the continued unlawful detention of several Barrick employees – now held for over five months – and the ongoing blockage of gold exports from the complex. Despite the government’s actions, including the blocking of gold exports and the seizure of stockpiled production, Barrick has maintained support for its employees and contractors. “Since operations were reluctantly suspended, the company has continued to pay wages and support the operations on an ongoing monthly basis,” it said in a press release.
Loulo-Gounkoto was expected to produce 550,000 ounces of gold this year or 14% of the company’s expected production of 4.0 million ounces.
Barrick said it has continued to engage in good faith with the government of Mali to finalize an agreement that was fully negotiated and accepted by the Ministry of Finance in February, 2025. outstanding disputes and paid US$85 million as part of the continuing negotiations.
Despite this, the government subsequently took a series of escalatory actions, including the arrest of Barrick employees and the suspension of gold shipments, Barrick said.
Mali’s government, which took power in 2021, has sought to take a greater share of the revenue generated by the country’s gold mining industry.
The government, which owns a 20% stake in the Loulo-Gounkoto complex, has accused Barrick of failing to honor commitments made under an arrangement designed to achieve a more-equitable distribution of mineral resource exploitation.
Barrick has refuted charges made against its employees. It has said that while the 2023 mining code has no application to existing operations such as Loulo-Gounkoto, the government insists on forcing Loulo-Gounkoto to comply with the framework of the new code.
On Monday, Barrick rose eased 0.42% or 11cents to $26.07. The shares trade in a 52-week range of $29.50 and $21.73.