Canadian miner Barrick Gold said it has submitted an arbitration request to the International Center for Settlement of Investment Disputes to settle a dispute with Mali over the Loulou Junkotou gold mine complex.
There has been a dispute between Barrick, the second largest gold extraction company in the world based on production, and the military junta in Mali since 2023 over a contract for Barrick based on the new mining rules in the country.
The fighting has led to several levels of escalation, including Mali issuing an arrest warrant for Barrick CEO Mark Bristow this month. Barrick owns 80% of Loulo-Gounkoto, while the government of Mali owns 20%.
This week, the mining company threatened to suspend its operations in Mali due to deteriorating mine conditions. Jefferies analysts wrote in a note this week that closing the mine would reduce Barrick’s earnings before interest, taxes and amortization by 11% next year.
Barrick said that arbitration was previously an effective tool for finding solutions acceptable to both parties.
The company did not respond to a Reuters inquiry about whether it had already suspended its operations in Mali or whether the junta had threatened to revoke its mining licence.
Four Barrick executives were arrested in Mali in November, the company said. They remain in custody, a person familiar with the matter said on Wednesday. Another source said that the mine continues to operate despite the cessation of gold exports.
During the nine months ended September 30, the Loulo-Gounkoto mine contributed $949 million to Barrick’s revenue.
Timothy L. said. Foden, counsel involved in international arbitration in mining disputes: “Barrick under its current leadership appears reluctant to resort to arbitration, so this shows they have done their due diligence and are confident in their claim.”
Under interim President Assimi Goita, Mali has increased pressure on Western miners in an attempt to increase its share of revenues from gold mines. In the past two months, the junta has detained senior executives of Western mining companies, including employees of these companies, for alleged non-payment of mining taxes.
The increasing pressure from Mali comes as gold prices reach record levels.