Barrick Gold (NYSE:GOLD; TSX:ABX) announced on Wednesday that it had submitted a request for arbitration to the International Centre for the Settlement of Investment Disputes (ICSID) to resolve disagreements with Mali.
On Monday, the world’s second-largest gold miner had said it would suspend operations in Mali if gold shipments remain blocked and disputes over a new mining code persist.
The Canadian mining giant has been locked in a months-long dispute with the Malian government over dividing economic benefits from the Loulo-Gounkoto complex, which produced nearly 700,000 ounces of gold last year.
In a statement on Wednesday, Barrick said the request for arbitration reflects its commitment to “adhering to established processes for resolving disputes in a fair and transparent manner.”
“Over its nearly three decades of operating in Mali, Barrick has consistently demonstrated its long-term commitment to the country and its people. While this process is ongoing, Barrick remains open to continued dialogue with the government to resolve these issues amicably and ensure the long-term success of the Loulo-Gounkoto complex,” said Mark Bristow, Barrick’s CEO.
Mali, Africa’s second-largest gold producer, has been under military rule since 2021, following the country’s third coup in less than ten years. The junta has prioritized restructuring the mining industry, rolling out a new mining code and conducting audits of operations. These changes have led to tense negotiations with foreign operators like Barrick, particularly over tax disputes and the terms of new agreements.
Arrests of staff from Australia’s Resolute Mining (ASX: RSG) and Barrick by military authorities have gathered pace since September. The situation escalated further last week when Malian authorities issued an arrest warrant for Barrick CEO Mark Bristow, citing tax disputes.
Barrick’s Loulo-Gounkoto complex, developed during Bristow’s tenure as CEO of Randgold before its acquisition by Barrick in 2018, is a cornerstone of Mali’s economy. Over the past 29 years, the company has invested more than $10 billion in the country, contributing between 5% and 10% of Mali’s GDP annually. Last year alone, Barrick injected over $1 billion into the local economy.
The mine complex is also one of Mali’s largest taxpayers and employers, with 97% of its 8,000-strong workforce being Malian nationals. According to Barrick, more than 70% of the economic benefits from the complex have gone directly to the Malian state.
Barrick shares fell as much as 1.4% as of 9:39 a.m. in New York. The company has a market capitalization of $28.25 billion.
