A Mali court is set to deliberate on the potential reopening of Barrick’s Loulo-Gounkoto gold mine under new provisional administration, reported Reuters, citing three sources.
Mali’s Government, holding a 20% stake in the project, has requested the reopening of the mining complex under provisional administration at the court.
The Tribunal de Commerce of Bamako court, led by Vice-President Souleymane Maïga, will oversee the filing process and case preparation, following a request by Mali’s military government.
A new management team would be appointed to restart and manage the mines if the judge concurs.
A lawyer with knowledge of the matter suggested that the provisional administration could be a strategy by Mali to expropriate Barrick’s assets.
The move could intensify the conflict that led to the suspension of the mine’s operations in January.
The conflict stems from disagreements regarding the implementation of a new mining code introduced in 2023, which increases taxes and expands the government’s share in the gold mines.
In a recent earnings update, Barrick disclosed receiving a notice from the government on 17 April, threatening provisional management if mining operations did not resume by 20 April.
Barrick has stated that operations can only recommence once the Malian Government lifts restrictions on gold exports.
The halt in operations came after the government confiscated approximately three tonnes (t) of gold, valued at around $317m (C$443.43m), accusing Barrick of tax evasion.
Meanwhile, negotiations are ongoing between the parties to draft a memorandum of understanding aimed at resolving the dispute.
Barrick CEO Mark Bristow indicated earlier this month that the two parties had nearly reached an agreement on three separate occasions, according to the report.
In February, Barrick agreed to pay $438m to the Mali Government for the release of detained managers and seized gold, but the agreement awaits government approval.
The government’s refusal to approve the agreement was due to Barrick signing the “wrong” document, according to a source familiar with the government’s stance.
Another source mentioned that the government requested additional payment, aligning with unpaid taxes since the mine’s closure.
In December 2024, Barrick initiated an international arbitration case against Mali over the dispute.
