By Adriano Marchese

Barrick Gold has temporarily halted operations in Mali after the government seized the miner's existing gold stock from its site and continues to block the shipments of gold.

The Canadian mining major said Tuesday it remains restricted from shipping gold from the Loulo-Gounkoto mining complex in Mali. The government also issued an order to move Barrick's existing gold stock to a custodial bank.

As a result, the company initiated the temporary suspension of operations while it continues to work toward a resolution. Local operations in Mali have deteriorated in recent months, with several of the mining operation's employees imprisoned and the movement of gold frozen.

Barrick in December filed a request for arbitration to the International Centre for the Settlement of Investment Disputes over the situation in Mali. Mali's government, which took power in a 2021, has sought to take a greater share of the revenue generated by the country's gold-mining industry.

In mid-2023, the government announced plans to overhaul the country's mining legislation, enacting a new mining code that would require local content in the mining sector, though existing mining titles were to remain subject to existing terms.

The government, which owns a 20% stake in the Loulo-Gounkoto complex, has accused Barrick of failing to honor commitments made under an agreement designed to achieve a more-equitable distribution of mineral-resource exploitation.

Barrick has refuted charges made against its employees. It has said that while the 2023 mining code has no application to existing operations such as Loulo-Gounkoto, the government insists on forcing the operation to be subject to the framework of that code.

President and Chief Executive Mark Bristow said earlier in the month that the company continues its efforts to reach an agreement with the Mali government on a memorandum of agreement to resolve the existing disputes, redefine the partnership's future and increase the state's share of benefits from the Loulo-Gounkoto complex.

On Tuesday, Barrick said it "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."

Loulo-Gounkoto accounted for about 13% of the almost 4.1 million ounces of gold Barrick produced in 2023.

-Robb Stewart contributed to this article.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

January 14, 2025 06:37 ET (11:37 GMT)

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