A Malian court has ordered the return of approximately three metric tonnes of gold, valued at around $400 million, to Canadian mining company Barrick Mining. The gold was seized in January from the company’s Loulo-Gounkoto complex by military helicopter, following a confiscation order issued by a judge. The seizure was made under Mali’s new mining code, introduced by the military-led government to increase the state’s share of extractive revenues.
The gold has been held in a bank vault in the capital city of Bamako since its seizure. Gold is a crucial component of Mali’s economy, accounting for over 70% of the country’s exports. The seizure was a significant blow to Barrick, the leading gold operator in Mali, which suspended some of its operations in response. The company argued that the measure was contrary to its contractual obligations.
After two years of negotiations, the two sides reached an agreement last month to resolve their dispute. Under the deal, Barrick will pay a $437 million settlement and withdraw its arbitration claims against Mali. In return, the government will drop its charges against the company, and four Barrick employees who were detained since November last year have been released.
The provisional administrator of the mining complex, appointed in January, is set to return control of Loulo-Gounkoto to Barrick next week. The agreement marks a significant step towards resolving the dispute and allows Barrick to resume its operations in Mali. The company’s suspension of operations had raised concerns about the impact on the country’s economy, which is heavily reliant on gold exports.
The new mining code, introduced by the military-led government, aims to strengthen the state’s share of extractive revenues. The code is part of a broader effort to increase transparency and accountability in the mining sector. The agreement between Barrick and the Malian government is seen as a positive development for the sector, which has faced challenges in recent years.
The return of the seized gold and the resolution of the dispute are expected to have a positive impact on Mali’s economy. The country’s mining sector is a significant contributor to its GDP, and the agreement is likely to boost investor confidence. The development is also seen as a step towards improving relations between the government and mining companies operating in the country.
