Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) again appeals to the government of Mali to sign an agreement facilitated and endorsed by the Ministry of Finance in February 2025.
Along with the guarantee of Barrick, such as payment of $85 million as part of ongoing negotiations, gold exports are suspended, some employees are unjustly held hostage, and the company premises in Bamako remain closed.
The standoff escalated as government ministries threatened to put the Loulo-Gounkoto mine under temporary administration if production resumed and taxes were paid despite ongoing government meddling in gold exports.
Barrick warns that delay could risk catastrophic economic instability in Mali, threatening essential revenue flows to the national budget.
“Barrick is poised to return production to the ground as quickly as possible, pumping desperately needed tax and royalty revenues into the Malian economy. But political and bureaucratic interests persist,” it said.
The situation’s impact extends beyond Mali’s borders, as disruptions in gold production contribute to volatility in global markets and investor uncertainty.
Barrick, a longstanding partner in Mali’s economic development, has continued fulfilling financial obligations, including worker salaries and supply chain payments.
However, the company cautions that sustaining these commitments indefinitely is not viable. In response to the deadlock, Barrick considers seeking international arbitration to have the matter resolved.
It is appealing to the Malian government to act, safeguarding the integrity of the country’s mining industry and economic progress for its people.
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