By Robb M. Stewart

Barrick Gold could soon halt operations in Mali as tensions with the government intensify and gold shipments remain halted.

The Canadian company has been restricted from shipping gold from its Loulo-Gounkoto mining complex in the African country and said Monday an interim order has now been issued against existing stocks of gold on site that prevents exports and disrupts normal operations.

If the issue isn't resolved in the coming week, Barrick will temporarily suspend operations at Loulo-Gounkoto, President and Chief Executive Mark Bristow said.

Bristow said the interim attachment order is unwarranted and is in contravention of agreed dispute resolution mechanisms.

The inability to ship gold affects mining operations and has broader implications for the local economy, including the mine's roughly 8,000 employees and local service providers, the company said.

Barrick in December filed a request for arbitration to the International Centre for the Settlement of Investment Disputes over the situation in Mali. Local operations in Mali have deteriorated in recent months, with several of the mining operation's employees imprisoned and the movement of gold frozen.

Mali's government, which took power in a 2021, has sought to take a greater share of the revenue generated by the country's gold-mining industry.

In mid-2023 the government announced plans to overhaul the country's mining legislation. A new mining code was adopted requiring local content in the mining sector, though existing mining titles were to remain subject to existing terms. The government, which owns a 20% stake in the Loulo-Gounkoto complex, has accused Barrick of failing to honor commitments made under an agreement designed to achieve a more-equitable distribution of mineral-resource exploitation.

Barrick has refuted charges made against its employees. It has said that while the 2023 mining code has no application to existing operations such as Loulo-Gounkoto, the government insists on forcing Loulo-Gounkoto under the framework of that code.

Bristow said the company 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.

Loulo-Gounkoto accounted for about 13% of the almost 4.1 million ounces of gold Barrick produced in 2023.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

January 06, 2025 07:44 ET (12:44 GMT)

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