Barrick Gold, the world’s second-largest gold miner and Canada’s third-largest miner of any kind, is hoping the end is near for a long-running dispute over its mining complex in Mali.
Driving the news: In August 2023, Mali began negotiating with foreign miners on how to meet its new mining code mandating 35% ownership interest for national and local private investors in mining projects. The country also audited miners for financial infractions.
- Although Barrick offered Mali 55% of the economic benefits of its mining complex, it has been unwilling to pay the US$500 million Mali alleges it owes.
- In recent months, a deal between the two has broken down, with Mali threatening to let Barrick’s permits lapse and even briefly detaining four local Barrick executives.
Big picture: Barrick’s largest mine in Mali made up 13% of its total gold production in 2023, making it a vital hub at a time when gold demand hits record highs due to global uncertainty.
Why it matters: Developing nations are increasingly enacting policies to grow control over their natural resources. About two-thirds of the total value of Canadian mining assets were located abroad as of 2022, making the industry quite vulnerable to this growing trend.—QH