Barrick negotiates with Mali junta as it arrests four

Randgold Resources CEO Bristow Loulo-GounkotoBarrick Gold CEO Mark Bristow, third from left and with Randgold in this 2017 photo, underground at Loulo-Gounkoto. Credit: Barrick Gold

Barrick Gold (TSX: ABX; NYSE: GOLD) said it was negotiating financial terms with the Malian government after authorities arrested four employees of its Loulo-Gounkoto mine.

“Details of the agreement, based in essence on Barrick’s original proposals, will be made public once the terms of the settlement have been finalized,” the company said on Monday in an emailed statement.

The company’s release didn’t acknowledge the arrests, which Reuters reported earlier, citing local industry officials saying they were senior local company employees accused of financial crimes.

Mali’s military government, which has been in power since a 2021 coup, issued a new mining code last year allowing for increased royalties and up to 35% state ownership of projects. It’s been squeezing Western gold producers such as B2Gold (TSX: BTO; NYSE-A: BTG) with its Fekola mine, Allied Gold’s (TSX: AAUC) Sadiola and Resolute Mining’s (ASX: RSG; LSE: RSG) Syama for more financial concessions.

‘Challenging’ talks

Barrick president and CEO Mark Bristow said the company has had “mutually beneficial” relationships with Malian governments over 30 years and occasional differences with successive regimes had always been amicably resolved.

“The current negotiations have proved challenging but we’re encouraged by the government’s recognition of the importance of securing the long-term viability of the Loulo-Gounkoto complex as a substantial contributor to the Malian economy,” Bristow said. “We look forward to working with the government to normalize our long-standing partnership.”

Mali has kicked out troops from former colonizer France and shifted its diplomatic ties closer to Russia. That country’s Wagner Group of mercenaries has been fighting Islamist insurgents in the country. It also controls at least one mine, according to reports by non-governmental organizations. They criticize foreign miners for indirectly supporting Vladimir Putin’s regime in Moscow.

Shares in Barrick fell 2% on Monday in Toronto to $26.82 apiece, valuing the company at $48.3 billion. They’ve traded in a 52-week range of $18.65 to $28.67.

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