VANCOUVER, BC (MiningIR) — Barrick Gold Corporation, a leading global mining company, has been a significant player in Mali’s gold mining sector for nearly three decades. Its flagship Loulo-Gounkoto complex stands as a testament to this enduring partnership, contributing substantially to Mali’s economy and development.
Barrick Gold has reported that, despite previously reaching an agreement on a framework to resolve disputes with the Government of Mali over its Loulo-Gounkoto complex, the company has been unable to finalize a resolution. This impasse persists despite numerous good-faith efforts to negotiate and Barrick’s demonstrated willingness to compromise well beyond its legal entitlements.
A Legacy of Economic Contribution
Since commencing operations in Mali, Barrick has invested over $10 billion into the country’s mining industry. The Loulo-Gounkoto complex alone has been a cornerstone of this investment, accounting for approximately 5% to 10% of Mali’s Gross Domestic Product (GDP) annually. In 2023, Barrick’s operations contributed more than $1 billion to the Malian economy, underscoring the company’s role as a major economic driver. Furthermore, the complex is one of Mali’s largest employers, with a workforce of about 8,000 people, 97% of whom are Malian nationals. This commitment to local employment reflects Barrick’s dedication to fostering community development and economic empowerment within the regions it operates.
Recent Challenges and Government Relations
Despite this longstanding partnership, recent developments have strained relations between Barrick and the Malian government. In 2023, Mali introduced a new mining code aimed at increasing the state’s share in mining projects. While the government seeks to apply this code retroactively to existing operations, Barrick contends that the Loulo-Gounkoto complex should be exempt. Negotiations have been ongoing for over a year, with Barrick making significant concessions to reach a mutually beneficial agreement. However, these efforts have yet to yield a final resolution. The situation escalated when several senior members of Barrick’s Malian management team were detained on charges the company describes as unfounded. Additionally, gold shipments from the complex have been blocked, further complicating operations. Barrick President and CEO Mark Bristow expressed concern, stating, “Recent developments further erode investor confidence in Mali’s mining sector and will deter future investment.”
Potential Impact on Operations
The suspension of gold shipments poses a significant threat to the continuity of Barrick’s operations in Mali. If the blockade persists, the company may be compelled to halt production at the Loulo-Gounkoto complex. Such a suspension would not only affect Barrick’s business but also have broader implications for Mali’s economy, given the complex’s substantial contribution to GDP and employment. Bristow emphasized this point, noting that halting operations would impact “the viability of this critical economic driver for Mali.”
Commitment to Resolution
Despite these challenges, Barrick remains committed to resolving disputes through constructive engagement with the Malian government. The company has a history of successful partnerships in the region and continues to seek amicable solutions that uphold the interests of all stakeholders.
“Barrick has been a committed partner to Mali for nearly three decades, delivering significant value to stakeholders and communities,” said Mark Bristow, Barrick President and CEO. “Recent developments further erode investor confidence in Mali’s mining sector and will deter future investment. Nonetheless, in view of our long-standing commitment to the people of Mali, we remain open to constructive engagement with the government to resolve these issues while protecting the viability of this key economic driver for Mali.”
Barrick Gold’s nearly 30-year presence in Mali has been marked by significant contributions to the nation’s economy and development. However, recent regulatory changes and operational challenges have introduced complexities that require careful navigation. The company’s willingness to engage in dialogue with the Malian government reflects its dedication to sustaining this important partnership for the benefit of all involved.
