Mali government seizes 3 tons of gold from Canadian Barrick mine

The military government of Mali has confiscated gold stocks belonging to Barrick Gold Corp, a Canadian mining company, as part of the legal battle over the share of revenue Mali will own.

The seizure of three tons of gold from the Barrick Mine began earlier this week, compelling Barrick to suspend all operations at the Loulo-Gounkoto mine. The main point of contention is the precise amount of the mine that the government now owns under the new legislation.

The Canadian mining company has suffered approximately 25% decline in its shares since the commencement of the dispute and the Malian government demanding all mining companies to revise their contracts in accordance with the newly enacted laws pertaining to mining in the country.

In a statement by the company on Tuesday, it was noted that “Barrick remains committed to constructive engagement with the Malian government and all stakeholders to find an amicable solution that ensures the long-term sustainability of the Loulo-Gounkoto mining complex and its vital contribution to Mali’s economy and communities.’’

The Malian government initially owned a 20% stake in the mining business since its establishment in 2005; however, under the new codes, the West African nation is entitled to more than just 20%. According to the new military government, the Canadian mining company owes about $500 million in taxes, and bullion worth $245 million was transported to a state-owned bank vault on Monday. 

However, in the letter by the company, it was said that Barrick is “awaiting official confirmation of the proper receipt by the Malian Solidarity Bank.

The confiscation follows months of heightened disputes leading to the apprehension of four senior Barrick officials and still in custody.

In addition to offering to pay $370 million, the Canadian mining company has requested that the issue be decided in an arbitration court.

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