Barrick tables new update on Mali gold mine dispute

Barrick Gold Corp. [ABX-TSX, GOLD-NYSE] is calling for responsible leadership as a dispute with the government in Mali escalates.

In the latest update, Barrick said departments within the government of Mali, have closed the company’s Bamako office and threatened to place the company’s Loulo-Gounkoto mine under provisional administration unless the mine is reopened and tax payments made – even though gold exports remain blocked.

“It is regrettable that the government continues to obstruct gold exports while simultaneously demanding tax payments on revenue it has actively prevented from being realized,” Barrick 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. From the outset of its engagement, Barrick said it has worked to find a constructive solution. In October, 2024, it agreed to a framework aimed a achieving a comprehensive resolution of all 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 – who remain unfairly in detention – and the suspension of gold shipments, Barrick said.

“More recently, although Barrick signed the agreement presented by the government as requested in February, the government has failed to execute it. It’s conclusion now appears to be obstructed by a small group of individuals placing personal or political interests above the long-term interests of Mali and its people,” Barrick added.

The gold mining giant said it remains ready to honour the agreement envisioned by both partners and stands prepared to immediately restart production. “This would unlock substantial revenue for the country, including tax and royalty flows that form a very substantial part of the national budget,” Barrick said. “This would also see the dropping of unfounded criminal charges against its employees and their release from detention.”

However, while Barrick continues to seek a constructive solution, it remains prepared to pursue international arbitration and legal remedies against the government and any individuals or entities, acting in bad faith.

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 Wednesday, Barrick rose 3.4% or 97 cents to $29.38. The shares trade in a 52-week range of $29.50 and $21.73.