{"id":13913,"date":"2025-01-14T00:55:14","date_gmt":"2025-01-14T00:55:14","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/01\/14\/mali-enforces-gold-seizure-at-barrick-golds-mine\/"},"modified":"2025-01-14T00:55:14","modified_gmt":"2025-01-14T00:55:14","slug":"mali-enforces-gold-seizure-at-barrick-golds-mine","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/01\/14\/mali-enforces-gold-seizure-at-barrick-golds-mine\/","title":{"rendered":"Mali Enforces Gold Seizure at Barrick Gold\u2019s Mine"},"content":{"rendered":"<\/p>\n

The Malian government has begun seizing gold stockpiles at Barrick Gold\u2019s (TSX:ABX,<\/strong>NYSE:GOLD) Loulo-Gounkoto mining site amidst a dispute over changes to the nation\u2019s mining rules, enforcing a provisional order issued last week<\/strong>. <\/strong><\/p>\n

The seizure was confirmed by Barrick in a memo to staff, as the military-led government continues to claim a greater share of mining revenues from foreign operators, a Reuters report read.<\/p>\n

The enforcement began on January 11, according to Barrick\u2019s memo, which noted that the company may be compelled to suspend operations if the issue remains unresolved. <\/p>\n

The Loulo-Gounkoto site contributes significantly to Barrick\u2019s global production, accounting for about 14 percent of its estimated gold output for 2025. Barrick has an 80 percent interest in the operations, with the Malian government owning the remaining 20 percent.<\/p>\n

While Barrick has not disclosed the exact volume of gold affected, internal estimates suggest that around 4 metric tons of gold, valued at approximately US$380 million based on current spot prices, are at stake. Multiple sources told Reuters Monday (January 13) that around 3 metric tons had already been seized from the site by helicopter on January 11, one of whom valued the seized gold at US$245 billion.<\/p>\n

This comes amid ongoing tensions over the Malian government\u2019s claims of unpaid taxes and dividends, which Barrick has disputed.<\/p>\n

In a prior statement issued January 6, the company warned that it would be forced to halt operations if the government continued to restrict gold shipments. Barrick is seeking arbitration through the International Center for the Settlement of Investment Disputes.<\/p>\n

Mali claims the company owes US$512 million in unpaid taxes and dividends, a claim Barrick has rejected.<\/p>\n

The conflict has led to multiple detentions of Barrick executives, with the most recent occurring in November, after negotiations between the parties broke down. In early December, Reuters reported that the country had issued an arrest warrant for Barrick CEO Mark Bristow.<\/p>\n

\n

Mali\u2019s mining code changes and financial overhaul <\/h3>\n

Gold is Mali\u2019s primary export, contributing over 80 percent of the country\u2019s total export revenues in 2023. The West African country\u2019s government has been led by the military since a 2021 coup.<\/p>\n

In 2023, Mali introduced a new mining code that aims to raise the country\u2019s stake in mining operations from 20 to 35 percent. <\/p>\n

The new code also allows the government to collect 7.5 percent of sales revenue when gold prices exceed US$1,500 per ounce.<\/p>\n

Last year, following an audit into the mining sector, Mali began pursuing alleged back taxes and dividends owed by international mining companies. <\/p>\n

Finance Minister Alousseni Sanou announced that the country expects to collect 750 billion CFA francs, about US$1.2 billion, from miners in the first quarter of 2025, following a similar collection of 500 billion CFA francs in late 2024.<\/p>\n

Some companies have already come to agreements with the Malian government. For example, B2Gold (TSX:BTO,NYSEAMERICAN:BTG) reached a new agreement with the government last September for its Fekola operations that included financial settlements and Mali committing to expedite permitting for B2Gold\u2019s Fekola underground mine. <\/p>\n

Australia\u2019s Resolute Mining (ASX:RSG,LSE:RSG) resolved a tax dispute with the government in November 2024 by agreeing to pay US$160 million after its CEO and two other executives were detained in Mali.<\/p>\n

Barrick\u2019s dispute, however, remains unresolved at this time.<\/p>\n<\/div>\n

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

The Malian government has begun seizing gold stockpiles at Barrick Gold\u2019s (TSX:ABX,NYSE:GOLD) Loulo-Gounkoto mining site amidst a dispute over changes to the nation\u2019s mining rules, enforcing a provisional order issued last week. The seizure was confirmed by Barrick in a memo to staff, as the military-led government continues to claim a greater share of mining […]<\/p>\n","protected":false},"author":0,"featured_media":13914,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-13913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=13913"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13913\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/13914"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=13913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=13913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=13913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}