By Robb M. Stewart

A dispute between Canadian miner Barrick Gold and Mali's government escalated after officials closed its office in the capital and threatened to put its operations in the west African nation under provisional administration.

Barrick said it was told this week its Loulo-Gounkoto mine would be put under administration if suspended operations weren't restarted and tax payments were made, despite Mali's government continuing to block gold exports. It said departments with the government had closed the company's office in Bamako.

"It is regrettable that the government continues to obstruct gold exports while simultaneously demanding tax payments on revenue it has actively prevented from being realised," Barrick said in a statement Tuesday.

The situation in Mali has deteriorated in recent months. The government at the end of 2024 demanded payment from the company for various charges, taxes and duties, imprisoned four employees and issued an arrest warrant for Chief Executive Mark Bristow. Barrick in January suspended operations after the government seized gold and removed it to a custodial bank, and continued to restrict the company's gold shipments.

Barrick has said the criminal proceedings against it, its officers, directors and employees are meritless. The employees remain in detention.

The Toronto-based company has also been critical of Mali's efforts to make the Loulo and Gounkoto operations subject to a new mining code adopted in 2023 that increases state and private Malian interests in new projects, which the company said violates stability rights in agreed conventions. Mali already owns a 20% interest in Loulo-Gounkoto. The current 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.

Barrick said more recently it signed an agreement presented by the Mali's government as requested in February, but the government has failed to execute it. The company also previously paid $85 million as part of ongoing negotiations aimed at reaching a settlement.

The company said it has continued to pay wages in Mali and stands ready to restart production, which would unlock revenue for Mali, but the longer-term viability of its mining assets in the country were at risk. It added that while it continues to seek a constructive solution, it remains prepared to pursue international arbitration after filing a request in December to the International Centre for the Settlement of Investment Disputes.

In mid-2023, the government announced plans to overhaul the country's mining legislation, enacting a new mining code that would require local content in the mining sector, though existing mining titles including Barrick's were to remain subject to existing terms. The government has accused Barrick of failing to honor commitments made under an agreement it says is designed to achieve a more-equitable distribution of mineral-resource exploitation.

Barrick produced 3.91 million troy ounces of gold last year, including 578,000 ounces at Loulo-Gounkoto. For 2025, it has forecast attributable production of 3.15 million to 3.5 million ounces, excluding production from Loulo-Gounkoto.

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

(END) Dow Jones Newswires

April 15, 2025 14:05 ET (18:05 GMT)

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