The Globe and Mail reports in its Tuesday, Nov. 25, edition that Barrick Mining has resolved a dispute with the government of Mali that had idled one of its biggest operations, as uncertainty swirls over the longer-term future of the Canadian gold miner.
The Globe's Niall McGee writes that Barrick announced it has settled its differences with Mali, regaining control of the Loulo-Gounkoto mining complex. In return, Barrick is withdrawing its arbitration claims against Mali with the International Centre for Settlement of Investment Disputes (ICSID).
Barrick launched arbitration in December and shut down the mine in January. Control of the asset was lost completely in June when a Malian court transferred administration to the government.
Loulo-Gounkoto used to account for about 15 per cent of Barrick's production. A restart and ramp-up could take six to 12 months, according to Jefferies analyst Fahad Tariq.
No economic terms of the agreement were released on Monday, but Mali is expected to gain a bigger stake in Loulo-Gounkoto. It currently owns 20 per cent, with Barrick owning 80 per cent. Mali in 2023 brought in a new mining code that decreed it was entitled to a 35-per-cent stake in mining projects.
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