Barrick has confirmed the closure of its office in the Malian capital Bamako by the Malian government as well as threats from the government to place the Loulo-Gounkoto gold mine under provisional administration.
Operations at Loulo-Gounkoto have been suspended since the end of January following the government’s action in seizing three tons of gold from the complex after blocking gold exports from the mine since November.
According to a Barrick statement released on April 15 the Malian government is now demanding that the mine be re-opened and disputed tax payments made otherwise it will go for provisional administration.
Barrick commented it had “continued to engage in good faith with the Government of Mali” to finalise the agreement that was “fully negotiated and accepted by the Minister of Finance in February” following the initial framework agreement in October.
That established a framework to achieve a comprehensive resolution of all outstanding disputes while Barrick paid $85m to government as part of the on-going negotiations.
“Despite this the government subsequently took a series of escalatory actions, including the arrest of Barrick employees – who remain unfairly in detention – and the suspension of gold shipments,” Barrick stated.
Barrick attributed the government’s failure to execute the agreement to obstruction by “a small group of individuals placing personal or political interests above the long-term interests of Mali and its people.
“It is regrettable that the government continues to obstruct gold exports while simultaneously demanding tax payments on revenue it has actively prevented from being realised.”
Barrick commented that the situation is putting “the long-term viability of one of Mali’s most strategic mining assets and a key contributor to the national economy at risk.
“Barrick has continued to meet its obligations in good faith, paying wages sustaining workers and contractors’ livelihoods as well as the broad supply chain.”
But Barrick warned “this situation is not sustainable for the longer term and, while Barrick continues to seek a constructive solution, it remains prepared to pursue international arbitration and legal remedies against the government and any individuals or entities acting in bad faith.”
