Barrick Gold has signed an agreement with the Malian government to end a nearly two-year dispute over mining assets. The agreement involves a payment of $438 million to aid in resuming operations and the release of detained employees. The dispute arose from a new mining code favoring greater government shares in gold mining revenue.
Barrick Gold, a Canadian mining company, has reached an agreement with the Malian government to resolve a dispute involving its mining operations in Mali, spanning nearly two years. According to sources, the deal requires the Malian government’s formal approval after Barrick signed the agreement. A public announcement regarding this development may occur soon, potentially by Thursday.
The agreement stipulates that Barrick will pay 275 billion CFA, equivalent to $438 million, to the Malian government. In exchange, the government will release detained employees from Barrick and allow the company to recover seized gold and recommence operations at the Loulo-Gounkoto mine.
This conflict originated in 2023 when Barrick and the Malian government disagreed over the enforcement of a new mining code. The revised code mandates a larger share of mining revenue for the Malian government, heightening tensions between the two parties.
The resolution of the dispute between Barrick Gold and the Malian government marks a significant step forward for the mining sector in Mali. The financial agreement aims to facilitate a return to normal operations at the Loulo-Gounkoto mine while ensuring compliance with the new mining code’s stipulations that enhance government revenue from mining activities. This development may lead to renewed stability and confidence in Mali’s mining industry.
Original Source: www.usnews.com
