Barrick Mining Corp (TSE: ABX) (NYSE: B) is opposing a ruling made by the Government of Mali to place the Loulo and Gounkoto mines under direct control.
The ruling by the President of the Bamako Commercial Tribunal came shortly after submissions made last Thursday by Barrick’s Barrick’s Loulo and Gounkoto mines. This is in opposition to the government’s request to place the complex under provisional control, expected in early June.
On May 8, the government formally asked the court to impose provisional administration over the site. Barrick rejects the request, stating no legal or practical grounds justify handing Loulo-Gounkoto’s daily operations to a court-appointed interim administrator. A preliminary hearing followed on May 15. At that hearing, the court gave the mines a chance to respond formally.
This latest escalation by the Malian government follows its continued unlawful detention of several Barrick employees, now held over five months. It also follows the ongoing blockade of gold exports from the complex. In addition, the government seized stockpiled production. Despite these actions, Barrick has continued to support its employees and contractors. Since reluctantly suspending operations, the company has kept paying wages. Moreover, it has funded the site’s upkeep on a monthly basis.
“The attempt to interfere with Loulo-Gounkoto’s operations is without precedent or lawful justification,” Barrick said in a press release.
“It disregards Barrick’s rights under both Malian law and binding agreements, and it is inconsistent with the principles of due process and mutual respect that should underpin partnerships between governments and long-term investors.”
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Escalations continue between Barrick and Mali government
As recently as last week, Barrick wrote to the Malian Minister of Economy and Finances. In the letter, the company reiterated its willingness to resume discussions. Barrick seeks a fair agreement that secures the release of its detained employees. It also aims to restart operations. Importantly, the company stressed that this would benefit employees, the country, and all stakeholders.
For nearly three decades, Barrick has operated in Mali and built some of the country’s most successful mining operations. It has contributed significantly to Mali’s economy and social development. Now, Barrick continues to seek a fair and lasting resolution to the current dispute.
Accordingly, it has launched international arbitration under the dispute resolution terms in the Mining Conventions. The company remains firm in seeking justice for its unjustly detained employees. Further, it is actively defending its investment against actions that threaten the operations’ long-term viability, stakeholder value, and legal foundation.
This is the latest in a series of escalations between Barrick and the Malian government.
Earlier this year, the government put out a warrant for the arrest of Barrick CEO Mark Bristow in addition to the unlawful detention of several Barrick employees. Mali has also blocked gold exports and confiscated stockpiled production, further straining relations.
In response, Barrick has maintained support for its workers, continuing to pay wages and fund essential site operations. The company has initiated international arbitration under the Mining Conventions.
Despite the government’s actions, Barrick emphasizes its long-standing role in Mali’s economy and social development over nearly three decades. The company argues that these measures not only threaten the rule of law but also risk undermining stakeholder value and the long-term viability of the mining sector, which is critical to Mali’s economic stability.
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