Mali is accusing Barrick Gold Corp. ABX-T of not honouring commitments in the country as uncertainty mounts over whether both sides can reach a binding fiscal agreement around dividing the economic spoils of gold mining in the West African country.
Toronto-based Barrick said late last month it had reached a tentative agreement to solve a mining dispute with the Mali government. Barrick gave no details on the financial terms of the agreement but said in a press release Thursday that it has paid US$85-million to the Mali government as part of its negotiations.
L’Essor, a French-language daily in Mali, on Thursday published a screenshot of a letter signed by both Mali’s minister of economy and finances and minister of mines in which Barrick is criticized for not living up to commitments it made after the Sept. 30 tentative agreement. The allegations were centred around Barrick’s social and environmental footprint. The ministers said there are “serious risks” related to Barrick operating in Mali.
In its Thursday release, Barrick said it denied the allegations made by Mali and said it is acting in good faith as a long-standing partner of the country.
Mali last year introduced a new mining code aimed at imposing higher royalties on foreign companies operating in the country and taking up to a 35-per-cent ownership stake in mines. The ownership between Barrick and Mali of the Loulo-Gounkoto mining complex is currently split 80-20 in favour of the Canadian miner.
Barrick had pushed back on the new mining code and challenged an audit of the company’s operations in the country conducted by the military junta government.
Barrick on Thursday said it remains committed to finding a mutually acceptable solution to the impasse.
