Barrick Update on Loulo-Gounkoto Operations in Mali
Barrick Gold (NYSE:GOLD) faces significant operational challenges at its Loulo-Gounkoto mining complex in Mali. The company remains restricted from shipping gold, and a new interim attachment order prevents export of existing gold stock on site. CEO Mark Bristow warns that if the situation isn't resolved within a week, they may need to temporarily suspend operations, affecting 8,000 employees and local service providers.
The company has initiated arbitration through the International Centre for Settlement of Investment Disputes (ICSID) while pursuing negotiations with Mali's government for a memorandum of agreement. The situation is further complicated by the detention of several Malian employees on charges Barrick considers unfounded. Despite these challenges, Barrick emphasizes its commitment to Mali, where it has operated for nearly three decades, and seeks a resolution that would increase the State's share of benefits from the mining complex.
Barrick Gold (NYSE:GOLD) affronta significative sfide operative nel suo complesso minerario di Loulo-Gounkoto in Mali. L'azienda è attualmente limitata nella spedizione dell'oro e un nuovo ordine di sequestro provvisorio impedisce l'esportazione dell'oro esistente in loco. Il CEO Mark Bristow avverte che, se la situazione non verrà risolta entro una settimana, potrebbero dover sospendere temporaneamente le operazioni, con un impatto su 8.000 dipendenti e fornitori di servizi locali.
L'azienda ha avviato una procedura di arbitrato presso il Centro Internazionale per la Risoluzione delle Controversie in Materia di Investimenti (ICSID), mentre prosegue i negoziati con il governo del Mali per un memorandum d'intesa. La situazione è ulteriormente complicata dalla detenzione di diversi dipendenti maliani con accuse che Barrick considera infondate. Nonostante queste sfide, Barrick sottolinea il proprio impegno nei confronti del Mali, dove opera da quasi tre decenni, e cerca una soluzione che aumenterebbe la quota di benefici dello Stato dal complesso minerario.
Barrick Gold (NYSE:GOLD) enfrenta importantes desafíos operativos en su complejo minero de Loulo-Gounkoto en Malí. La compañía se encuentra restringida para enviar oro, y una nueva orden de embargo provisional impide la exportación del stock de oro existente en el sitio. El CEO Mark Bristow advierte que si la situación no se resuelve en una semana, podrían necesitar suspender temporalmente las operaciones, afectando a 8,000 empleados y proveedores de servicios locales.
La compañía ha iniciado un arbitraje a través del Centro Internacional para el Resolución de Disputas de Inversión (ICSID) mientras busca negociaciones con el gobierno de Malí para un memorando de acuerdo. La situación se complica aún más por la detención de varios empleados malienses con cargos que Barrick considera infundados. A pesar de estos desafíos, Barrick enfatiza su compromiso con Malí, donde ha operado durante casi tres décadas, y busca una resolución que aumente la participación del Estado en los beneficios del complejo minero.
바릭 골드 (NYSE:GOLD)는 말리의 루로-군코토 광산 단지에서 중요한 운영 문제에 직면해 있습니다. 이 회사는 금 배송이 제한되어 있으며, 새로운 임시 압류 명령으로 현장의 기존 금 재고 수출이 금지되었습니다. CEO 마크 브리스트로우는 상황이 1주일 이내에 해결되지 않을 경우 운영을 일시적으로 중단해야 할 수도 있으며, 이로 인해 8,000명의 직원과 지역 서비스 제공업체에 영향을 미칠 수 있다고 경고했습니다.
회사는 국제 투자 분쟁 해결 센터 (ICSID)를 통해 중재를 시작했으며, 말리 정부와 협약을 체결하기 위한 협상을 진행하고 있습니다. 이 상황은 바릭이 근거 없다고 간주하는 혐의로 여러 말리 직원들이 구금된 것에 의해 더욱 복잡해지고 있습니다. 이러한 어려움에도 불구하고 바릭은 거의 30년 동안 운영해온 말리에 대한 의지를 강조하며, 광산 단지에서 국가의 이익 점유율을 늘릴 수 있는 해결책을 모색하고 있습니다.
Barrick Gold (NYSE:GOLD) fait face à d'importants défis opérationnels dans son complexe minier de Loulo-Gounkoto au Mali. L'entreprise est actuellement restreinte dans l'expédition d'or, et un nouvel ordre de saisie provisoire empêche l'exportation du stock d'or existant sur place. Le PDG Mark Bristow avertit que si la situation n'est pas résolue dans une semaine, ils pourraient devoir suspendre temporairement leurs opérations, affectant 8 000 employés et prestataires de services locaux.
L'entreprise a engagé une procédure d'arbitrage auprès du Centre international pour le règlement des différends relatifs aux investissements (CIRDI) tout en poursuivant des négociations avec le gouvernement malien pour un mémorandum d'accord. La situation est encore compliquée par la détention de plusieurs employés maliens pour des accusations que Barrick considère comme infondées. Malgré ces défis, Barrick souligne son engagement envers le Mali, où elle opère depuis près de trois décennies, et cherche une solution qui augmenterait la part de l'État dans les bénéfices du complexe minier.
Barrick Gold (NYSE:GOLD) sieht sich in seinem Bergbaukomplex Loulo-Gounkoto in Mali erheblichen betrieblichen Herausforderungen gegenüber. Das Unternehmen ist von Goldtransporten ausgeschlossen, und eine neue vorläufige Beschlagnahmeanordnung verhindert den Export des vorhandenen Goldbestands vor Ort. CEO Mark Bristow warnt, dass sie, falls die Situation nicht innerhalb einer Woche gelöst wird, möglicherweise die Betriebe vorübergehend einstellen müssen, was 8.000 Mitarbeiter und lokale Dienstleister betreffen würde.
Das Unternehmen hat ein Schiedsverfahren über das Internationale Zentrum für die Beilegung von Investitionsstreitigkeiten (ICSID) eingeleitet und führt Verhandlungen mit der Regierung von Mali über ein Memorandum of Agreement. Die Situation wird durch die Festnahme mehrerer malischer Mitarbeiter, die Barrick als unbegründet erachtet, zusätzlich kompliziert. Trotz dieser Herausforderungen betont Barrick sein Engagement für Mali, wo es seit fast drei Jahrzehnten tätig ist, und sucht eine Lösung, die den Anteil des Staates an den Vorteilen des Bergbaukomplexes erhöhen würde.
- Pursuing constructive dialogue with Mali government for dispute resolution
- Working on agreement to increase State's share of benefits from mining complex
- Gold shipping restrictions and attachment order preventing exports
- Potential temporary suspension of Loulo-Gounkoto operations within a week
- Impact on 8,000 employees and local service providers
- Detention of several Malian employees affecting operations
- Legal disputes requiring ICSID arbitration
Insights
The ongoing dispute between Barrick Gold and Mali's government has reached a critical point that threatens the viability of the Loulo-Gounkoto complex. The interim attachment order preventing gold exports creates severe operational constraints, as mining operations require continuous cash flow to maintain activities. With 8,000 employees affected and potential suspension within a week, this represents a material risk to Barrick's production capacity.
The Loulo-Gounkoto complex is one of Barrick's key assets, historically contributing approximately 10% of the company's total gold production. A suspension would significantly impact Barrick's Q1 2025 production figures and could affect full-year guidance. The dispute's escalation to ICSID arbitration suggests a complex resolution timeline that could extend several months, creating uncertainty for operations and stakeholder relationships.
The decision to pursue ICSID arbitration while simultaneously negotiating demonstrates a sophisticated dual-track strategy to protect shareholder interests. However, Mali's unilateral actions, including the attachment order and employee detentions, suggest a deteriorating legal environment that could complicate dispute resolution. The situation echoes similar resource nationalism cases in West Africa, where governments have increasingly sought to renegotiate mining agreements.
The detention of Malian employees on allegedly unfounded charges adds a human rights dimension that could attract international attention and potentially pressure Mali's government. The legal framework under ICSID typically provides strong protections for foreign investors, but enforcement can be challenging in jurisdictions with evolving regulatory environments.
This situation reflects a broader trend of resource nationalism in West Africa, with governments seeking larger shares of mining revenues. The timing of Mali's actions, amid global gold price strength, suggests strategic pressure for concessions. The dispute risks setting a precedent for other mining operations in the region and could influence investor sentiment toward West African mining jurisdictions.
The potential suspension of operations would have significant socio-economic implications for Mali, where mining is a important foreign exchange earner. The government's aggressive stance, despite these economic risks, indicates possible domestic political considerations outweighing immediate economic benefits. This situation could influence other mining companies' risk assessments for West African investments.
TORONTO, Jan. 06, 2025 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) remains restricted from shipping gold from its Loulo-Gounkoto mining complex in Mali. In addition, an interim attachment order has now been issued against the existing gold stock on site which further prevents its export and disrupts normal operations. Barrick believes the interim attachment order is unwarranted and is in contravention of the agreed dispute resolution mechanisms.
Barrick’s president and CEO Mark Bristow says the inability to ship gold not only affects operations but has broader implications for the local economy, the 8,000 employees and its many local service providers. If this issue is not resolved within the coming week, Barrick will have no choice but to temporarily suspend operations at Loulo-Gounkoto. Such an action would be deeply regrettable but necessary, as previously reported.
“Barrick remains committed to constructive engagement with the Government of Mali to resolve the existing disputes amicably. As previously disclosed, we have initiated arbitration through the International Centre for the Settlement of Investment Disputes (ICSID) as a recognized mechanism to address these matters of disagreement while maintaining the integrity of existing agreements,” said Bristow.
“In parallel, Barrick continues its efforts to reach an agreement with the Mali government on a memorandum of agreement to resolve the existing disputes, redefine the partnership’s future and increase the State’s share of benefits from the Loulo-Gounkoto complex.”
He noted the situation was further compounded by the continued detention, on unfounded charges, of several of Barrick’s Malian employees and the company was actively working to secure their release and ensure their well-being. The company reiterated its commitment to the safety and rights of its workforce as a critical priority.
“Barrick continues to be a steadfast partner to Mali and its people, contributing significantly to the country’s economic and social development over nearly three decades. We are committed to dialogue and finding a mutually acceptable resolution that allows us to secure the future of Loulo-Gounkoto as a vital economic contributor to Mali,” Bristow said.
Barrick enquiries
Investor and media relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com
Website: www.barrick.com
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “continue”, “intended”, “committed”, “engage”, “negotiate”, “pursue” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: the outcome of dispute resolution through arbitration; the status of negotiations with the Government of Mali in respect of ongoing disputes regarding the Loulo-Gounkoto Complex and Barrick’s commitment to reach a mutually acceptable solution; the potential to increase the Government of Mali’s share in the economic benefits of Loulo-Gounkoto; and Loulo-Gounkoto’s partnership with the Government of Mali.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices; expropriation or nationalization of property and political or economic developments in Mali and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; risks related to disruption of supply routes which may cause delays in construction and mining activities, including disruptions in the supply of key mining inputs due to the invasion of Ukraine by Russia and conflicts in the Middle East; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; risks associated with new diseases, epidemics and pandemics; litigation and legal and administrative proceedings; employee relations including loss of key employees; increased costs and physical and transition risks related to climate change, including extreme weather events, resource shortages, emerging policies and increased regulations related to greenhouse gas emission levels, energy efficiency and reporting of risks; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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