Talks between Mali and Barrick Gold Corp. to resolve a long-running dispute over payments from the country’s largest gold mine have been suspended, according to people familiar with the matter.
The dispute centers on Barrick’s Loulo-Gounkoto gold complex, where Mali is demanding a settlement of 125 billion CFA francs ($197 million) and compliance with a new mining law that goes into effect in 2023. Mali is demanding a one-time payment, while Barrick is offering a payment plan over time. The new mining law would allow Mali to take a larger share of royalties and shares in the mine, while also shortening the term of Barrick’s license.
If a deal is reached, Mali could return 3 tonnes of gold seized in January and release four Barrick employees who have been detained since November. But the stalled talks leave the situation unresolved, with no clear timeline for a resolution.
Barrick CEO Mark Bristow recently said talks were making progress, but not as quickly as expected. The Loulo-Gounkoto mine produced about 700,000 ounces of gold in 2023, about 14% of Barrick’s total production. The company had previously agreed to pay Mali 50 billion CFA francs, but the dispute continues.
The Malian government has also accused Barrick’s employees of money laundering and terrorist financing, accusing them of taking $5.6 billion out of the country without authorization. Barrick denies the allegations, calling them unfounded. The company halted mining operations at Loulo-Gounkoto after the government began extracting gold from the site.
In recent months, Mali’s military government has stepped up its demands on foreign mining companies, demanding more taxes and settlement payments. Last year, the CEO of Resolute Mining was detained and only released after agreeing to a $160 million payment. Other companies such as B2Gold and Allied Gold have also reached new settlement agreements with Mali.