Home Business Barrick Gold Agrees to $438 Million Deal to Restart Mining in Mali, Report Says
BusinessNews

Barrick Gold Agrees to $438 Million Deal to Restart Mining in Mali, Report Says

364
Barrick Gold and Mali
REUTERS/Dado Ruvic/Illustration/File Photo

Barrick Gold has agreed to pay $438 million to settle its long-running conflict with the Malian government. The Canadian mining company has reportedly signed the deal and is awaiting approval from Mali’s authorities. According to an exclusive report from Reuters, an official announcement could come as early as Thursday, but last-minute hurdles could still delay it.

The dispute began in 2023 when Mali introduced a new mining code. The law increased the government’s share in mining revenues and removed tax exemptions for companies. This sparked tensions with Barrick, leading to the seizure of nearly three tonnes of gold and the detention of some employees. Under the new agreement, Mali will release the detained workers and return the confiscated gold. Barrick will also regain full access to its Loulo-Gounkoto gold mine.

More than 15 officials from Malian ministries and the consulting firm Iventus Mining completed a three-day inspection of Barrick’s mining site on Wednesday, sources said. Late last week, authorities also gave Barrick one week to resume operations.

The dispute has vastly reduced Barrick’s gold production. The company lowered its annual output forecast to between 3.2 million and 3.5 million ounces. This drops from 3.9 million ounces last year to 4.1 million in 2023. Despite record-high gold prices, Barrick’s stock has not seen similar gains.

The agreement comes as Mali, along with Niger and Burkina Faso, pushes for more control over its natural resources. The three countries are working to reduce their dependence on foreign mining firms. Neither Barrick nor Mali’s mines ministry has spoken on the matter yet.

Read More: Coris Investment Group Acquires TotalEnergies’ Assets in Burkina Faso

Nigeria Sues Binance, Demands $81.5 Billion for Economic Losses and Back Taxes

About The Author

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

U-17 Africa Cup
NewsSports

CAF U-17 Nations Cup: Golden Eaglets Absent as Morocco Thrash Uganda in Opener

The TotalEnergies U-17 Africa Cup of Nations is underway in Morocco, and...

HealthNews

N’Golo Kanté Donates Multi-million Medical Centre in Mali to Cater to Women and Children

French international footballer N’Golo Kanté has invested $5 million—equivalent to more than...

Reports emerging just a few days after recent allegations against the Nigerian National Petroleum Company Limited by Alhaji Aikko Dangote, founder of Dangote Petroleum Refinery,
News

Petrol Prices Soar Past ₦930/Litre, May Hit ₦1,000 Without Naira-for-Crude Deal Extension

In the past days, petrol prices have surged from approximately N860 per...

NewsSecurity

Non-state Militia Attacks Worsen in Benue and Neighbouring Eha-Amufu, Enugu; Residents Condemn Government Silence

Herdsmen attacks and insecurity are worsening in Benue and neighbouring Enugu State,...