WASHINGTON: Canadian mining giant Barrick Gold has initiated arbitration proceedings with the International Centre for Settlement of Investment Disputes to resolve a protracted dispute with Mali’s government regarding the Loulo-Gounkoto gold mine complex.
The disagreement, stemming from Mali’s revised mining regulations in 2023, has escalated tensions between Barrick and the ruling junta. This month, Mali issued an arrest warrant for Barrick CEO Mark Bristow. Barrick, which owns 80% of the mine, with the remaining 20% held by Mali’s government, warned it might suspend operations due to worsening conditions at the site.
The Loulo-Gounkoto mine contributed $949 million to Barrick’s revenue in the first nine months of 2024. Analysts at Jefferies estimate that a shutdown could reduce Barrick’s 2025 earnings by 11%. Despite threats to suspend activities, the mine continues to operate, though gold exports have halted.
Four Barrick executives arrested in November remain detained, according to sources familiar with the situation. Barrick noted that arbitration has been a successful approach in resolving similar disputes in the past but declined to comment on whether operations in Mali had been suspended or if its mining license was at risk.
The dispute highlights growing tensions as Mali’s interim government under President Assimi Goita seeks a larger share of mining revenues. Recent months have seen increased scrutiny and detentions of foreign mining executives over alleged tax non-compliance. These measures come as gold prices reach record highs, underscoring Mali’s strategy to maximize returns from its resource-rich sector.
Barrick’s move to arbitration signals its confidence in the validity of its claims, with international arbitration lawyer Timothy L. Foden describing the decision as a carefully considered step.
