Mali's Mining Dispute: Barrick's Loulo-Gounkoto Conflict

A court hearing about Barrick Mining's Loulo-Gounkoto mining complex being placed under provisional administration has been deferred. The conflict arises from a dispute between Mali's government and Barrick over a new mining code, raising stakes in gold operations, taxes, and the detention of mining executives.

A pivotal decision on whether to place Barrick Mining's Loulo-Gounkoto mining complex under provisional administration has been postponed until May 22, following a deferral by a Malian court. The long-standing dispute between Barrick Mining and the Malian government has been intensifying amid disagreements over a newly implemented mining code.

The dispute escalated when the Malian government introduced a mining code that heightens taxes and grants the government a larger share in the gold mines, a move criticized by Barrick. The military government declares its intentions to augment revenue from the mining sector, claiming current agreements are inequitable. Barrick asserts it has made significant investments in Mali's economy, criticizes the government's shifting demands, and opposes the detainment of its executives.

The Malian state, which owns a 20% stake in Loulo-Gounkoto, requested the court to place the mines under provisional administration in an effort to resume halted operations. Operations were suspended in January following government accusations against Barrick for tax evasion and the seizing of gold worth an estimated $317 million. As both parties continue negotiating a resolution, Barrick states operations can only restart when export restrictions are lifted.

(With inputs from agencies.)