BARRICK Mining said on Monday it had entered into an agreement with Mali to end a long-standing dispute over the Loulo-Gounkoto mine.
The Toronto-listed miner said the Loulo-Gounkoto mine would be taken out of provisional administration and operational control returned to it. In addition, all charges brought against Barrick, its subsidiaries and employees by the Mali government would be dropped and legal steps would be undertaken for the release of imprisoned employees.
“As a result of the settlement, Barrick’s subsidiaries will withdraw the arbitration claims currently pending before the International Centre for Settlement of Investment Disputes,” the gold miner said.
“This will pave the way for a constructive path forward,” it added. Shares in Barrick gained more than 6% on Toronto Stock Exchange.
The dispute between the sides dates back to almost two years following the implementation of the West African country’s new mining code which gave Mali a bigger share of revenue from gold miners.
During the standoff, Mali seized three tons of gold from Loulo-Gounkoto and appointed a provisional administrator to take charge of the mine. This led Barrick to write off $1bn in revenue from the mine and also saw the departure of its former CEO Mark Bristow.
Loulo-Gounkoto, which produced 723,000 ounces of gold in last year, is one of Barrick’s most important assets, said Bloomberg News. The seizure of the mine meant the Canadian firm had been unable to fully capitalize on bullion’s record-breaking rally this year.
