Barrick Gold threatens to suspend operations in Mali: Gold deliveries blocked

The Canadian gold producer Barrick Gold is considering suspending its activities in Mali, as negotiations over a new mining code with the Malian authorities are proving to be extremely difficult. According to Barrick, the situation in the Loulo-Gounkoto complex, a significant project of the company in West Africa, has dramatically deteriorated. Employees have been detained without apparent reason, and the shipment of gold bars is being blocked. The current development alarms both the company and investors, as Barrick would be forced to cease operations if the blockade continues. This would have serious consequences for Mali, whose economy significantly benefits from gold production. Barrick Gold's shares fell by 1.8% on the Toronto Stock Exchange. The negotiations with the Malian government have been ongoing for a year but have so far been unsuccessful. The aim is to regulate operations under a new mining law introduced in 2023, which does not provide stipulations for existing projects. Although Barrick has made significant concessions, these have been rejected by the government. As the company further reports, senior employees of several mining companies have already been arrested in Mali, including staff from Barrick as well as executives from Australia's Resolute Mining. An arrest warrant for Barrick's CEO, Mark Bristow, has been issued and labeled as illegitimate. Despite these challenges, a senior official from the Ministry of Mines has stated that negotiations are still ongoing. Analysts from Jefferies had previously warned of the difficulties that Barrick could face in Mali, which has heightened concerns about the investment climate in the region.