Barrick Gold threatens to suspend Mali operations over blocked exports

Barrick Gold will suspend operations in Mali if gold shipments continue to be blocked, the company said on Monday as it struggles to reach agreement with authorities on a new mining code in the West African country.

Conditions at the miner’s Loulo-Gounkoto complex have “deteriorated significantly”, Barrick said, adding that employees have been imprisoned without cause and shipments of bullion have been blocked.

“If shipments remain suspended, Barrick will be compelled to suspend operations, further impacting the viability of this critical economic driver for Mali,” the company said.

Shares of Barrick Gold were trading down by 1.8% at the Toronto Stock Exchange at 12.13pm ET (5.30pm GMT).

A spokesperson for Mali’s mines ministry did not immediately respond to a request for comment on the matter. The ministry has previously not commented on the arrests of mining executives in the country.

The world’s second-largest gold miner by volume has been negotiating with authorities in Mali for a new mining code to govern its operations in the country for about a year. Barrick said those talks have been “unsuccessful”.

In a research note, Jefferies said the market was already expecting challenging negotiations for the company in Mali.

Negotiations stalled even after Barrick made “significant concessions”, which the government rejected, Barrick said.

A senior official at the Ministry of Mines told Reuters “negotiations are continuing, they’re ongoing”.

The government wants Barrick’s mine in the country to be governed under new mining rules adopted in 2023, Barrick said, but the law has no application to existing operations.

Mali authorities have arrested staff from Australia’s Resolute Mining, including its CEO Terence Holohan, who were released after the company agreed to pay $160-million to resolve a tax dispute. Executives from Barrick have also been detained and the government has an arrest warrant for Barrick CEO Mark Bristow.

Barrick said the charges against its staff are unfounded and called the arrest warrant against Bristow “illegitimate”.

“Recent developments further erode investor confidence in Mali’s mining sector and will deter future investment,” the company said.