The move could intensify the conflict that led to the suspension of the mine’s operations in January.
If approved, a new management team would be appointed to resume and oversee operations at the mine, which have been suspended since January due to a dispute. A legal expert familiar with the case suggested that the provisional administration could be an attempt by Mali to gain greater control over Barrick’s assets, potentially escalating tensions.
The disagreement centers on Mali’s 2023 mining code, which increases taxes and enhances the government’s share in gold mining operations. Barrick reported in its recent earnings update that on April 17, it received a notice from the government threatening provisional management unless operations restarted by April 20. Barrick has maintained that it cannot resume production until the government lifts restrictions on gold exports.
The suspension followed the government’s seizure of approximately three tonnes of gold, valued at about $317 million, with accusations that Barrick failed to meet tax obligations. Barrick has denied these claims. CEO Mark Bristow noted earlier this month: “The two sides had come close to reaching an agreement three times,” indicating ongoing efforts to resolve the dispute through a memorandum of understanding.
In February, Barrick agreed to pay $438 million to the Malian government to secure the release of detained managers and seized gold. However, the agreement has not been finalized, with one source stating that the government rejected it because Barrick signed an incorrect document. Another source indicated that the government sought additional payments to cover taxes accrued since the mine’s closure.
Negotiations continue, but Barrick initiated an international arbitration case against Mali in December 2024 to address the ongoing dispute. The Loulo-Gounkoto complex, a significant contributor to Mali’s economy, remains a focal point for both parties as they seek a resolution that balances operational and financial interests.
The court’s decision could significantly impact the future of the mine, which has faced operational challenges amid high gold prices and evolving regulatory demands. The outcome of the hearing and ongoing talks will likely shape the partnership between Barrick and Mali, affecting the region’s mining sector and economic landscape.
