Barrick Mining (B) stock has resolved its dispute with Malian government
Barrick Mining (B) said on Monday that it has reached a resolution to a two-year dispute with Mali's military-controlled government, which arrested four of Barrick's employees and seized 3 metric ton of gold from its mine.
The ordeal began when Mali's government proposed changes to its mining law in 2023 that would increase the state interest in projects to 35%. The situation escalated the next year when the government arrested four of Barrick's senior Malian employees, charging them with alleged financial crimes.
The government also issued an arrest warrant for Barrick's former CEO Mark Bristow in 2024, accusing him of money laundering. Barrick launched an arbitration against Mali at the International Centre of Investment Disputes that same year, and then suspended its operations there in January.
The company's Loulo-Gounkoto mine in Mali was placed under state control by a court ruling in June.
"This ruling follows actions by the Malian government to block gold exports and seize gold stocks belonging to Barrick’s subsidiaries — measures Barrick believes to be unjustified and which led to the temporary suspension of operations," the company said in a statement at the time.
"These developments occurred despite Barrick’s ongoing efforts to reach a constructive and sustainable resolution."
Barrick noted that it "has been a committed partner to Mali, supporting economic development and local communities" for nearly three decades. But the company said its employees "had been unjustly imprisoned and used as leverage in this process," which it called "deeply concerning and inconsistent with the trust, transparency and accountability required for a genuine long-term partnership."
Barrick is the second-largest gold miner in the world, but has been facing turbulence in Mali since a junta put the military in control of the government in 2020, as Reuters reported.
However, with the resolution reached on Monday, "charges brought against Barrick, its affiliates and employees will be dropped and the legal steps for the release of the four detained Barrick employees will be undertaken," the company said.
The provisional administration of its Loulo-Gounkoto mine will also be terminated and operational control will be handed back to Barrick.
"This will pave the way for a constructive path forward," the company said in a statement. "As a result of the settlement, Barrick’s subsidiaries will withdraw the arbitration claims currently pending before the International Centre for Settlement of Investment Disputes (ICSID)."
Barrick's stock rose 8.2% on news of the agreement.
The Financial Times reported last week that activist hedge fund Elliot Management has "built a large stake" in Barrick after the miner has struggled to capitalize on the recent gold rally. This now makes Elliot among the top 10 shareholders in Barrick, with a stake that is at least $700 million, according to the FT.
Elliot will likely push Barrick to break up its business, separating its North American operations from the ones it has in more volatile parts of the world like West Africa. Barrick's board had reportedly already been considering making such a split even before the hedge fund built its larger stake.