The conflict between the Malian government and Barrick Mining Corp (TSE: ABX) (NYSE: B) (ETR: ABR0) just took flight in a new direction.
On Thursday, a military helicopter landed at the gold major’s Loulo-Gounkoto complex and loaded up 1 metric ton of bullion. It showed up unannounced, according to a report from Bloomberg.
The development comes only days after the mining operation’s court-appointed administrator, Soumana Makadji, said that he planned to sell the US$107-million-dollar quantity of gold to fund a restart at Loulo-Gounkoto.
Mali already seized 3 tonnes from Barrick in January with military choppers, prompting Barrick to suspend operations indefinitely and pursue international arbitration at the International Centre for Settlement of Investment Disputes. Mali just appointed African lawyer Diamana Diawara to defend the country against Barrick.
The gold miner has condemned Makadji’s game plan for the gold mine. Mali’s recent actions lack legal basis, violate contracts and demonstrate a lack of appreciation for Barrick’s investments in the country, the company believes.
“Any plan by the provisional administrator to restart operations or sell gold from the site would be not only illegitimate but also ill-advised,” Barrick said in a statement on Thursday.
As the complex is one of Barrick’s most prolific assets, accounting for 15 per cent of international gold production, resolving the conflict is of great importance for the precious metal producer.
The dispute between Mali authorities and Barrick began in 2023 when the African nation implemented a new mining code. It raised taxes for companies in Mali’s resource extraction sector while giving the government a greater stake in domestic projects. Mali’s financial issues inspired the move.
Mali detained four Barrick employees in September and issued an arrest warrant for CEO Mark Bristow, which remains active, alleging financial crimes. This was proceeded by additional financial disputes and further action by the government as mentioned.
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