Mali judge rejects Barrick appeal to free staff

A court in Mali has rejected Barrick Mining’s (TSX: ABX; NYSE: B) appeal to release four employees arrested in November, deepening a high-stakes standoff between the Canadian mining giant and the country’s military-led government.

Judge Samba Sarr ruled the appeal “unfounded,” Alifa Habib Kone, a lawyer for Barrick, told Reuters on Tuesday. The employees, local staff working at Barrick’s Loulo-Gounkoto gold mine, remain in pre-trial detention in Bamako, the capital of the West African state. They face allegations including money laundering and regulatory violations, 

CEO Mark Bristow, himself facing an arrest warrant issued by Malian authorities in December, has rejected all allegations, calling them without merit. 

The company didn’t immediately reply to a request for comment from Mining.com, part of The Northern Miner Group. Shares in Barrick gained 1.3% on Tuesday to close at $29.58 apiece in Toronto for a market capitalization of $50.8 billion. 

Junta demands

Barrick’s relations with Mali’s military-led government, which seized power in a 2021 coup, have deteriorated over disputes involving taxes, gold export rights and ownership of Loulo-Gounkoto. It has been shut since January after the government blocked gold export permits and seized more than three tonnes of the metal. Authorities grabbed another tonne on July 10.

The junta adopted a new mining code in 2023 and has at times reverted to what amounts to extortion and kidnapping of executives, like Resolute Mining’s (ASX: RSG; LSE: RSG) former CEO, to extract more from Western miners. It’s part of a West African regional trend as Mali and neighbouring states Burkina Faso and Niger — all run by military governments — seek revenue for their poverty-stricken countries to push back Islamic extremism. 

Loulo-Gounkoto accounted for 578,000 oz. or roughly 15% of Barrick’s total gold production in 2024. Barrick holds an 80%  stake in the operation, while the Malian state owns the remainder.

Timeline

• 2021 
  A military junta led by Général d’Armée Assimi Goïta seizes power in Mali. 

• August 2022 
  Mali’s Minister of Economy and Finance orders an audit of the mining sector. Inventus Mining, run by former Barrick staff, and Mazars Senegal, run the audit through 2022 and 2023. 

• March 2023 
  Preliminary audit findings air on national TV, criticize the mining sector but omit industry responses. Analysts say report was biased and flawed. 

• August 2023 
  Mali adopts a new mining code without consulting the industry, despite repeated calls for inclusive dialogue. 

• October 2023 
  The government launches a review of existing mining contracts, led by the same audit group,raising conflict-of-interest concerns. The 2023 code doesn’t legally apply to pre-existing contracts, including Barrick’s. 
• Barrick offers to transition to the new framework, if exemptions can preserve project viability. It submits several proposals, but the Renegotiation Committee refuses to engage. 

• Late 2023–2024 
  Barrick makes successive concessions during talks, while Mali increases demands. In parallel, authorities launch investigations and detain local Barrick staff. 

• October 2024 
  Junta say Barrick owes about $512 million in back taxes and dividends. The company pays $83 million and outlines a path to resolve disputes. Authorities release detained employees. 

• November 2024 
  Four more employees are arrested and remain in detention. Authorities also issue arrest warrant for Barrick’s CEO. 

• Nov. 14, 2024 
  Mali blocks gold export authorizations, halting Barrick’s shipments. 

• December 2024 
  Barrick initiates ICSID arbitration claiming violations of its legal rights. 
   
  2025 

• January 
  Authorities seize over three tonnes of gold.Barrick suspends Loulo-Gounkoto operations. 
  Negotiations briefly resume later in the month, but the Renegotiation Committee backtracks.  

• February 17 
  To secure its employees’ release, Barrick signs a memorandum of agreement, is to pay $438 million. The government doesn’t countersign and escalates tensions by asking a local court to place the mine under provisional administration. 

• May 29 
  The company asks the arbitration tribunal of the World Bank to intervene in the local legal proceedings. 

• June 16 
  The Bamako Tribunal of Commerce appoints Soumana Makadji as provisional administrator for at least six months. He indicates plans to resume gold exports and restart operations. 

• July 
  Arbitration proceedings advance. A hearing on provisional measures is scheduled for late July.
  
  
• July 7
  Local lawyers finally get an appeal heard regarding the employees’ detention, months late. 
  
  
• July 10
  Government helicopters land unannounced at Loulo-Gounkoto, seizing over a tonne of gold, likely for sale by the provisional administrator.
  
  
• July 16 
   Malian court denies Barrick appeal to release employees being detained. 
  
  ** Sources: Barrick Mining, Mining.com and Reuters.