Barrick and Mali halt talks without deal

Barrick Gold (TSX:ABX; NYSE:GOLD) and the Malian government have suspended negotiations before resolving a drawn-out dispute over payments from the country’s largest gold mine.

Mali is seeking a settlement payment of 125 billion CFA francs (US$197 million) from the Canadian mining giant, according to Bloomberg News, which cited local sources. The government is also demanding Barrick’s compliance with the country’s new mining code that increased the state’s share of mining revenues and eliminated tax exemptions. 

The Loulo-Gounkoto gold complex, developed when CEO Mark Bristow led Randgold before Barrick bought it in 2018, is a cornerstone of Mali’s economy. But the company shut it nearly a month ago because of the rift.

Last week, Bristow had expressed optimism about the talks, noting the company was “making progress”. He also acknowledged that developments were not advancing as swiftly as anticipated. 

Barrick didn’t immediately reply to an emailed request for comment from Mining.com. The company’s shares fell 1.6% on Tuesday afternoon in Toronto to $24.54 apiece as wider stocks fell on U.S. tariff fears. 

Helicopter exit

The Toronto-based miner halted Loulo-Gounkoto after the government seized gold stocks and flew them by helicopter to the state-owned Banque Malienne de Solidarité in Bamako. Since December, the Malian government, which holds a 20% stake in Loulo-Gounkoto, has restricted gold exports from the site.

Mali’s military leadership passed sweeping reforms to the mining sector in August 2023, adopting a stricter approach to foreign investors. Other companies — including Resolute Mining (ASX, LSE: RSG), B2Gold (TSX: BTO; NYSE-A: BTG) and Allied Gold (TSX: AAUC) — have inked new agreements with the junta.

Barrick says it has invested more than $10 billion in the country over the past three decades, contributing between 5% and 10% of Mali’s GDP annually. In 2023 alone, the company injected over $1 billion into the local economy.

The mining complex is also a significant taxpayer and employer, with 97% of its 8,000-strong workforce comprising Malian nationals. According to Barrick, over 70% of the economic benefits generated by the complex have gone directly to the Malian state.