Barrick Gold, the world’s second-largest gold miner, has requested arbitration with the International Centre for Settlement of Investment Disputes over a contractual dispute with Mali’s government regarding its Loulo-Gounkoto mine complex. The disagreement stems from Bamako’s attempts to get Barrick to agree to a new contract based on the country’s updated mining rules. The dispute, which began in 2023, escalated recently, with Mali issuing an arrest warrant for Barrick CEO Mark Bristow and detaining four executives. The Loulo-Gounkoto mine contributed $949 million to Barrick’s revenue in the first nine months of 2024. While the mine remains operational, Barrick has threatened to suspend operations due to deteriorating conditions. However, the company owns 80% of the mine and could see earnings drop by up to 11% next year if operations are suspended. Consequently, arbitration is seen as the best tool for resolving the dispute.
SOURCE: REUTERS
