BARRICK Mining said it had “cautioned everyone” not to damage Loulo-Gounkoto whilst it sought to resolve a dispute over the Mali mine with the country’s military government.
Commenting on recent arbitration with the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), Barrick CEO Mark Bristow said an interim request filed by the company was to preserve the mine’s operational integrity.
Mining at Loulo-Gounkoto had been suspended since mid-January after authorities blocked Barrick’s gold exports and seized three tons of gold inventory. Then, in June the mine was placed under state control by a local court.
“We are focused on cautioning everyone not to damage the assets while we try and seek a solution,” Bristow said at the firm’s second quarter results presentation on Monday.
The Canadian miner and Mali’s military-run government have been negotiating since 2023 over a new mining code that raises taxes and grants the state a greater share in gold mines. Barrick owns 80% of the Loulo-Gounkoto mining complex whilst the government holds the remainder.
In its second quarter numbers, Barrick took a $1.04bn charge related to the mine’s seizure by the government. The write-down sent Barrick’s shares lower, said Bloomberg News.
The Toronto-based company reported the substantial loss in its second-quarter earnings, attributing it to “deconsolidation of Loulo-Gounkoto following the change of control.” However, this impact was partially mitigated by a $745m gain from selling its half-stake in Alaska’s Donlin Gold project, said the newswire.
Bristow said in the presentation that the ICSID hearing was one of several efforts aimed at resolving the dispute. “The Mali authorities have nominated their member to the tribunal as have we,” said Bristow. “We have an independent president. So it’s constituted.
“At the same time, we continue to engage through other treaty programs between Canada and Mali,” he said. “We have representation in country through our legal counsel, as well as some of our executives that are still in the country. We also have third party mediation ongoing.
“We’re not at that stage where we don’t believe that we can find a resolution,” he added. “I’ve always said that when you’re engaging and talking, there’s always an opportunity.”
Barrick posted much improved net earnings for the second quarter – its best in over a decade – owing to reduced all in sustaining costs and a 15% increase in the gold price. Net earnings came in at 47 US cents per share, beating consensus and easily beating first quarter earnings of 27c/share.
