Mali has once again hit the headlines by further causing a serious headache for major miner, Barrick Gold, as it grapples with escalating challenges at its Loulo-Gounkoto mining complex. The country has now extended its gold export ban to include the stockpile at this crucial site. The turn of events comes despite the complex being a significant contributor of Mali’s economy.
Over the past 29 years, the company states it has invested more than US$10B into the country, contributing between 5% and 10% of Mali’s GDP annually. Last year alone, Barrick injected over US$1B into the local economy.
This new restriction, announced on Monday, further disrupts operations and casts a shadow of uncertainty over the future of one of Mali’s most vital mining ventures, including the employment of over 8,000 employees.
Barrick’s president and CEO, Mark Bristow, has strongly condemned the order, labelling it “unwarranted” and in direct conflict with the dispute resolution methods previously agreed upon with the Malian government.
For months, the Canadian mining giant has been locked in a heated dispute with the Malian government over how to split the revenue from the Loulo-Gounkoto complex, which produced nearly 700,000oz of gold in 2023. Since early December, gold shipments have been under strict restriction, adding fuel to the ongoing conflict.
In December, Barrick filed for arbitration with the International Centre for the Settlement of Investment Disputes (ICSID) while also working to negotiate a memorandum of agreement with the Malian government, the document aims to settle disputes, redefine their partnership, and boost the state’s share of the profits from the Loulo-Gounkoto complex.
