Barrick Mining's Mali Dispute Puts $1 Billion Revenue at Risk

Barrick Mining excludes Mali's gold complex from its 2025 forecast due to a dispute over mining legislation with Mali's military government. Operations have been suspended, risking $1 billion in revenue. Mali courts are moving to appoint a provisional administrator, while Barrick seeks international arbitration.

Barrick Mining has decided to remove its Mali gold complex from its overall output forecast for 2025, amid an escalating dispute with the country's military-led government over mining legislation. This move underscores the potential financial fallout both sides face, with an estimated $1 billion revenue at stake due to high gold prices.

The Loulo-Gounkoto complex, a cornerstone of Barrick's African operations, has been at a standstill since January. The halt in operations followed the government's decision to block gold exports and detain staff amidst negotiations over a new contract. In response, Barrick has initiated international arbitration proceedings against Mali.

The situation remains tense as Mali's government, a stakeholder in the complex, seeks a court-appointed administrator, which could see Barrick losing control of the mines. While Mali has offered some concessions, including the repatriation of earnings, disagreements over jurisdiction for future disputes persist. Investors are wary of potential impacts on Barrick's reserves and future earnings.

(With inputs from agencies.)