Negotiations between Mali’s government and Barrick Gold Corp. to resolve a long-standing dispute over payments from the country’s largest gold mine have been suspended, according to sources familiar with the matter, as reported by Bloomberg. The talks, which aimed to address financial and regulatory disagreements, have hit a stalemate over the terms of settlement and compliance with Mali’s new mining code.
Mali is demanding a one-time payment of 125 billion CFA francs ($197 million) from Barrick, the Canadian mining giant, as part of the resolution. Additionally, the government insists that Barrick adhere to the 2023 mining code, which could grant Mali a larger share of royalties and stakes in the Loulo-Gounkoto gold complex, one of Africa’s most productive mines. The new code may also reduce the duration of Barrick’s mining license, according to its provisions.
Barrick, however, has proposed a payment plan spread over time rather than a lump-sum settlement, according to one source. This disagreement over payment terms has contributed to the suspension of talks, though the situation remains fluid and could change at any time.
The dispute escalated earlier this year when Mali seized 3 tons of gold from the Loulo-Gounkoto mine in January and detained four Barrick employees in late November. Sources indicate that if an agreement is reached, Mali could return the confiscated gold and release the detained employees.
The Loulo-Gounkoto complex is a critical asset for both parties, contributing significantly to Mali’s economy and Barrick’s global operations. The suspension of talks underscores the challenges of balancing corporate interests with national regulatory changes in resource-rich countries.
Bloomberg reported that it remains unclear how long the negotiations will remain suspended, but the outcome could have far-reaching implications for Mali’s mining sector and foreign investment in the region.
