Barrick Gold is seeking a resolution with Mali over a dispute related to a new mining code, leading to a temporary suspension of operations. The government seized gold and blocked exports, but an agreement to resolve the matter is pending formal approval. Employee compensation continues despite operational issues, but overdue payments to suppliers are concerning.
Barrick Gold is actively engaged in resolving its asset dispute with the Malian government, according to a memo from its chief operating officer for Africa and the Middle East. The conflict stems from Mali’s implementation of a new mining code, which increases the state’s share in Barrick’s Loulo-Gounkoto gold mining operations.
From January 13, Barrick had to temporarily halt its mining activities after the Malian government seized about three metric tons of gold and blocked the company’s gold exports since early November. On February 19, it was reported that Barrick signed an agreement to resolve the dispute, pending formal approval from the state.
Although the agreement has not faced major obstacles, the finalization process is taking time, as noted by sources close to the situation. Previous agreements with other mining companies in Mali have also experienced delays in government approval.
In an internal memo to staff, Sebastiaan Bock indicated that there were “no major updates at this stage.” He reiterated that all non-critical operations remain paused. Despite this situation, Barrick has maintained salaries and annual bonuses for its employees, although they are experiencing overdue payments to one of the complex’s suppliers, which reported being owed two months of payments.
Barrick Gold’s ongoing negotiations with the Malian government highlight the complexities involved in adhering to new mining regulations. The situation remains fluid, with the company committed to finding a beneficial resolution while currently facing operational interruptions. Maintaining employee compensation amidst these challenges illustrates Barrick’s commitment to its workforce, yet overdue supplier payments signal financial strains due to halted operations.
Original Source: www.mining.com
