BARRICK Mining has reached a 244bn CFA francs ($430m) settlement with Mali to resolve a two-year dispute that forced closure of the Loulo-Gounkoto gold complex, said Bloomberg News citing people familiar with the matter.
The Canadian miner will pay 144bn CFA francs within six days of signing, with another 50bn coming through VAT-credit offsets. A further 50bn was paid last year, said the newswire citing sources.
As reported on Monday, Barrick will regain operational control and withdraw arbitration proceedings against the West African nation. Mali will drop charges and release four employees detained during the dispute, including steps to lift an arrest warrant issued for former CEO Mark Bristow.
The company has accepted Mali’s 2023 mining code whilst securing a 10-year renewal of the Loulo permit, which was due to expire in February, said Bloomberg News. Mali relinquished state control, enabling operations to resume.
If restarted quickly, the mine could produce approximately 670,000 ounces next year, generating $1.5bn in operating cash flow, according to BMO Capital Markets analysts.
Barrick shares surged 8.5% to a 13-year high following Monday’s announcement. The dispute erupted when Barrick resisted Mali’s revised mining code, which increased royalties and state participation. Mali responded by demanding back taxes and seizing the operations, said Bloomberg.
Citing the miner’s interim CEO Mark Hill, Reuters reported that Barrick remained committed to its Reko Diq copper mine in Pakistan, one of the world’s largest undeveloped deposits of the metal, and to the country as well.
The $7bn project, in the remote, insurgency-hit western province of Balochistan, is held in an equal partnership between the company and the Pakistani authorities and is expected to start production by the end of 2028.
