Barrick is in negotiations with Mali’s government to end a two-year dispute that shuttered the company’s giant gold mine and landed employees in jail https://t.co/vDiMaDrgtz ...

Core Insights - Barrick Mining's Loulo-Gounkoto gold mine in Mali has resumed operations after a shutdown lasting over nine months due to tensions with the military-led government [1][2] - The mine's management was temporarily taken over by Soumana Makadji, appointed by a Malian court, amid disputes over export blocks and employee detentions [2][4] - The Loulo-Gounkoto complex produced 723,000 ounces of gold last year, and its shutdown hindered Barrick from capitalizing on the rise in gold prices this year [3] Operations and Management - Operations at the Loulo-Gounkoto mine restarted following an agreement to resume payments to contractors [2] - Mali's Mines Minister indicated that the interim management would ensure operations restart, pay workers, and produce gold for the national economy [2] - The Ministry of Mines clarified that it is not involved in the operations, which are under interim administration [3] Legal and Financial Issues - Barrick has initiated arbitration proceedings against Mali and filed appeals regarding the detention of four employees, denying allegations of money laundering and terrorism financing [4] - The ongoing dispute involves claims of back taxes and new mining legislation, with Barrick asserting that its local subsidiaries have agreements protecting them from certain legal changes [5] - Government agents reportedly seized a tonne of gold from the site, and Barrick is awaiting updates on the status of the bullion [4]

Core Viewpoint - The legal situation surrounding Barrick Mining's operations in Mali has intensified, with the company facing significant challenges due to government pressure and legal issues related to its Loulo-Gounkoto gold complex [1][3]. Group 1: Legal Issues - Malian prosecutors have appealed a judge's order to release four Barrick employees on bail, prolonging the uncertainty regarding the company's operations in the country [1][2]. - The employees, including a regional manager, will remain in jail until the Court of Appeal reviews the prosecution's case, with bail set at 50 billion CFA francs (approximately US$90.3 million) [2]. Group 2: Allegations and Government Pressure - The arrests in November 2024 were linked to allegations of money laundering, terrorism financing, and tax-related offenses, which Barrick has denied, claiming they are part of escalating pressure from Mali's military-led government [3]. - The dispute stems from Mali's 2023 mining code, which increased government royalties and equity stakes in joint ventures, leading to tensions as Barrick resisted demands for a larger share of profits from the Loulo-Gounkoto complex [4]. Group 3: Financial Impact - The standoff has resulted in significant financial repercussions, with Barrick announcing a writedown of over $1 billion on its Malian operations, reducing the carrying value of its 80% stake in Loulo-Gounkoto, which previously contributed about 15% of the company's total gold output [6]. - Barrick's shares fell by 0.5% in morning trading, resulting in a market capitalization of approximately $50.2 billion [7]. Group 4: Management Changes - The crisis escalated when Hilaire Diarra, a former general manager of Barrick's Tongon mine and key negotiator with Mali, was appointed as a special adviser to Mali's president, indicating a shift in the negotiation landscape [7].