Mali, Canada mining giant end gold complex dispute
Mali, Canada mining giant end gold complex dispute
Canadian giant Barrick and Mali announced Monday they had reached an agreement ending their dispute over one of the world's largest gold complexes, as the country's economy grinds to a halt under a jihadist fuel blockade.
In mid-June, a Mali court ruled that the western Loulo-Gounkoto gold mines held by Barrick would be managed for six months by an appointee, effectively stripping operation from the firm amid rising tensions over taxes.
"Operational control over the complex will be handed back to Barrick," the Toronto-based company said in a statement Monday, adding that "all charges brought against Barrick, its affiliates and employees will be dropped".
It additionally said that legal steps for the release of four detained Barrick employees will move forward.
Malian authorities said in a statement that the country's ministers of economy and of mines received a delegation from Barrick earlier in the day, noting that the agreement "marks the end of a period of conflict".
Barrick has an 80-percent stake in the Loulo-Gounkoto complex, while the Malian state holds the rest.
While Loulo-Gounkoto is in the country's west, many of Mali's rich mining sites are located in the north and often controlled by jihadists.
Mali's junta is locked in an ongoing battle against jihadists from the Al-Qaeda-linked Group for the Support of Islam and Muslims , who started a fuel blockade in September while also extending their influence across a large swathe of territory.
The resumption of normal operations comes "much to the delight of employees, local communities, and the Malian economy", the government said in its statement.
- Fraught history -
Barrick and Mali's authorities said as a result of the agreement, the company would withdraw its arbitration claims before the International Centre for Settlement of Investment Disputes , a World Bank arbitration panel.
Barrick added that the agreement would "pave the way for a constructive path forward".
Mali's junta had tightened regulations on the mining sector, which is key to its economy, before falling into dispute with Barrick.
Bamako had introduced a new industry code in recent years granting the government a bigger share of profits from mining activities in the name of national sovereignty.
It accused Barrick of not properly paying taxes, royalties and dividends owed to the state.
In mid-January, activities at the mine were suspended after Malian authorities carried out an order to seize gold stocks at Loulo-Gounkoto, taking some three tonnes of gold.
The move came after four Malian employees of the firm were detained several months prior.
Then in April authorities ordered the closure of Barrick's offices in Bamako for alleged non-payment of hundreds of millions of dollars of taxes.
Loulo-Gounkoto, which is situated in western Mali near the border with Senegal, was opened two decades ago and the first gold from underground operations was produced in 2011.
It consists of both open pit and underground mining. According to the trade publication Mining Technology, the mine contributed around $1 billion to the Malian economy in 2023.
bfm-mk/cw
This article was generated from an automated news agency feed without modifications to text.
