Judge to hear Mali's request to reopen Barrick mine under new management

A court in Mali will hold a hearing on Thursday to consider a request made by Mali's military government to reopen Canadian miner Barrick's Loulo-Gounkoto gold mine under a provisional administration, a court official says.

Granting the request would represent a major escalation of a dispute between the West African country and the Canadian miner after operations at the complex were suspended in January in a dispute over taxes and ownership.

Souleymane Maïga, vice-president of the Tribunal de Commerce of Bamako, told Reuters there will be a filing process and preparation of the case on Thursday.

Three sources told Reuters earlier on Wednesday a judge was expected to rule on Mali government's request to put Barrick's mines under new provincial management.

In its earnings update on May 7, Barrick said it had on April 17 received a notice from the government threatening to impose provisional management unless the mines resumed operations by April 20.

Barrick Mining, previously called Barrick Gold, and Mali's government have been at odds since 2023 over the implementation of a new mining code that raises taxes and gives Mali's government a greater share in the gold mines.

Barrick has said it can only resume operations when the Malian government removes restrictions on gold exports.

Operations at the mines were halted after the government seized around 3 metric tons of gold worth some $317m (R5.78bn) at last week's price, accusing the company of not fulfilling its tax obligations. The government had been blocking Barrick's gold exports since early November.

As a shareholder with a 20% stake in the facility, Mali's government requested reopening of the mining complex under provisional administration at the Tribunal de Commerce de Bamako Court, two of the people said.

If the judge agrees, a new management body would be appointed to reopen and run the mines, the sources said.

Spokespersons for Barrick and Mali's mines ministry did not immediately respond to requests for comment.

The latest development comes as the two sides negotiate a memorandum of understanding to resolve the dispute.

Barrick CEO Mark Bristow told Reuters this month that the two sides had come close to reaching an agreement three times.

Reuters reported in February that Barrick had signed an agreement to end the dispute, under which it would pay a total of 275-billion CFA (R8.58bn) to the government in return for the release of four detained managers and its seized gold.

The agreement went to the Malian government for approval.

The government's justification for not approving the agreement was that Barrick had signed the "wrong" document, according to one of the people, who is familiar with the government's position.

Another source said the government has also asked for additional payment.

The person familiar with the government's position said any additional money demanded by the government would be in line with taxes the company has not paid since suspending operations.

Barrick in December 2024 launched an international arbitration case against Mali regarding the dispute.

A lawyer familiar with the dispute said provisional administration could be an attempt by Mali to expropriate Barrick's assets.

Reuters