Barrick Gold Corp. is taking Mali to international arbitration due to a long-standing financial disagreement concerning its Loulo-Gounkoto mines. Mali has been hindering Barrick's gold exports and threatens to halt production.
Barrick Gold Corp. is seeking international arbitration against Mali, as a long-running fiscal dispute between the West African country and Canada’s second-biggest gold miner worsens. Toronto-based Barrick in a statement on Wednesday said it has filed a request for arbitration to the International Centre for the Settlement of Investment Disputes (ICSID) over the situation involving its Loulo-Gounkoto mining operations in Mali.
Mali has been preventing Barrick from shipping gold out of the country and that it may have to halt production there as a result. The two Malian mines account for about 14 per cent of Barrick’s earnings before interest, taxes, depreciation and amortization (EBITDA). Mali’s military junta, which seized power in a 2021 coup, has been applying heavy pressure on foreign mining companies in a bid to obtain a bigger share of the economics. Mali has forged close links to Moscow in recent years, recruiting an estimated 1,000 Russian soldiers to boost security. Two other mining companies, Canada’s B2Gold Corp. and Australia’s Resolute Mining, both recently settled fiscal disputes with Mali, but at a significant cost. Mali has been seeking at least US$417-million from Barrick. Barrick said that taking Mali to arbitration reflects its commitment to “adhering to established processes for resolving disputes in a fair and transparent manner.” Arbitration has proven to be “an effective tool for reinforcing partnerships and finding mutually acceptable solutions through an independent and competent authority,” the company said. This isn’t the first time that Barrick has sought arbitration against a hostile host country, but it is a tactic that typically takes years to resolve, and even if a positive outcome is obtained, there is no guarantee of a clean resolution. In 2011, Barrick and its partner launched arbitration proceedings against Pakistan in a dispute over the right to mine a massive copper and gold project in the country. It took seven years for Barrick to be awarded a multibillion-dollar payou
BARRICK GOLD MALI MINING DISPUTE INTERNATIONAL ARBITRATION INVESTOR DISPUTES
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