(Bloomberg) -- Mali and Barrick Gold Corp.’s negotiations to end a protracted dispute over payments from the country’s biggest gold mine have been suspended, according to people familiar with the government’s position.
In the battle over Barrick’s Loulo-Gounkoto complex, Mali is asking the Canadian miner for a 125 billion CFA francs ($197 million) settlement payment, and for its adherence to a new mining code that came into force in 2023, according to three people on the government’s side familiar with the talks.
Mali is asking for a one-time payment while Barrick seeks a payment plan spread over a period of time, one of the people said. Adopting the new mining law could give Mali larger stakes and royalties in Loulo-Gounkoto while potentially reducing the duration of the license for Barrick, based on its provisions.
If a deal is finalized, Mali could return the 3 tons of gold it seized from the mine in January and release four Barrick employees detained since late November, one of the sources said.
It’s not clear how long the talks may be suspended and the situation could change at any time.
A Barrick spokesperson declined to comment. A Malian finance ministry official involved in the talks didn’t respond to calls and a text seeking comment.
Barrick’s Chief Executive Officer Mark Bristow last week told Bloomberg TV that the miner was making progress with the talks, but said the advances hadn’t come as fast as expected.
Loulo-Gounkoto produced almost 700,000 ounces of gold in 2023, about 14% of Barrick’s total output. The world’s No. 2 gold producer last year agreed to make an initial payment of 50 billion CFA francs to the government before the dispute dragged on.
According to a court order issued by a Bamako tribunal last month, the four Barrick staff were being held on accusations of money laundering and financing of terrorism, with the junta alleging $5.6 billion in funds were moved out of the country without proper authorization.
Barrick has said the allegations against its employees, as well as tax claims are “unfounded.” The company last month suspended mining activities at the vast Loulo-Gounkoto site after the government started removing gold from the mine.
Mali’s cash-strapped military leaders have upped the ante in recent months against foreign miners, demanding more in back taxes and dividends. Aside from detaining the four Barrick staff in November, the junta also issued an arrest warrant for Bristow.
Mali Issues Arrest Warrant for Barrick Gold CEO Mark Bristow
Last year Resolute Mining Ltd. CEO Terry Holohan was detained for a week in the capital, Bamako, and only released after the Australian company agreed to pay $160 million to Mali and move to the new mining code. Holohan resigned earlier this month.
B2Gold Corp. and Allied Gold Corp. have also announced fresh agreements, which both involve settlement payments for their Fekola and Sadiola mines respectively, and expansion projects.
--With assistance from Mark Burton.
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