Canadian miner looks to solve quarrel with Mali
Date
10/2/2024 5:53:44 AM
(MENAFN) Canadian mining giant Barrick Gold Corporation has announced a significant agreement with the government of Mali to address claims and disputes regarding mining concessions for its operations in Loulo and Gounkoto, two key mining sites in the western Sahel region. The details of the contract will be disclosed once the settlement is fully finalized, as noted by Barrick, the world’s second-largest gold miner, in a statement issued on Monday. This announcement comes in the wake of a recent incident where Malian authorities arrested four senior employees of Barrick on suspicion of financial misconduct.
Barrick Gold has been one of the leading gold producers in Mali, a country rich in mineral resources. However, the firm has faced increasing pressure since the military coup in 2020, which brought a new regime to power. In response to these changes, negotiations have been ongoing to establish a new extraction contract that would allow the military-led government more control over the country’s mineral resources.
Mali is recognized as one of Africa's top gold-producing nations, with major mining operations including the Loulo and Gounkoto sites. Barrick holds an 80% stake in these operations, while the Malian government owns the remaining 20 percent. However, changes in legislation, particularly a new mining code enacted last year, have allowed the state to claim up to 30% ownership in any new mining projects, intensifying the need for negotiations.
During a recent statement, Barrick’s president, Mark Bristow, highlighted the long-standing relationship between the company and various Malian governments, emphasizing that over the past 30 years, they have maintained a mutually beneficial partnership, with any disagreements historically resolved amicably. He noted, “The current negotiations have proved challenging, but we’re encouraged by the government’s recognition of the importance of securing the long-term viability of the Loulo-Gounkoto complex as a substantial contributor to the Malian economy.”
As both parties work towards a resolution, the outcome of these negotiations will be crucial not only for Barrick Gold but also for the economic future of Mali, as the country continues to navigate its political landscape and the implications of its mining sector on national development. The settlement may set a precedent for future foreign investment in Mali and affect how mineral resources are managed in the context of the changing political environment.
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