Barrick asks World Bank court to intervene in Mali proceedings

Mint

29-05-2025

Barrick seeks World Bank court intervention to prevent Mali mine takeover
Mali's new mining code challenges foreign companies
Barrick claims Mali moved goal posts on investment terms
TORONTO, May 29 (Reuters) - Barrick Mining has asked the arbitration tribunal of the World Bank to intervene in legal proceedings in Mali, as the miner faces the possibility of the Loulo-Gounkoto mine falling under the control of the Mali government.
Barrick's move comes as a local court in Mali is expected to rule on June 2 on the government's request to put the Canadian miner's gold mine under a provisional administration. If the Mali court ruling goes in favor of the government, an individual or an organization will be assigned to take over the mine and reopen it. Barrick's gold mine in Mali has been shut since January this year after Mali seized 3 tons of gold from its mine over non-payment of taxes. Barrick has disputed the allegations.
In a filing with the International Centre for Settlement of Investment Disputes (ICSID) made public on Wednesday, Barrick asked the arbitration tribunal for "provisional measures."
"Put simply, 'provisional measures' means that Barrick has applied to the tribunal for an order requiring Mali government to refrain from taking further actions that would exacerbate the dispute, including Mali's effort to place the mine into provincial administration," Timothy Foden, of international law firm Boies Schiller Flexner, said.
Barrick did not immediately respond to an email query from Reuters. Mali's Mines Ministry did not respond to a Reuters email query either.
Mali, Africa's third-largest gold producer, has issued a new mining code and tightened its grip on the country's gold mines, mostly run by Western companies.
The military-led government says that it wants to increase its revenue from the mining sector as it believes current arrangements are unfair, and that foreign multinationals must comply with its demands if they want to keep operating in the gold-rich country.
Most mining companies in Mali have yielded to the government's demands, except Barrick. The company has repeatedly said it has invested heavily in the Malian economy for more than 20 years. It accuses the government of moving its goal posts and asking for more money, as well as unfairly detaining some of its executives in what it says is an attempt to blackmail the company.
Mali's military-led government has shut down Barrick's corporate office in Bamako, and the mine closure has led to Barrick's contractors laying off their employees.
An official familiar with the Mali government's thinking told Reuters that there are no grounds for international arbitration, and it is a domestic tax issue. Even if the World Bank tribunal rules in favor of Barrick's request for a provisional measure, Mali can ignore it, Foden said, although Mali would risk further scaring off Western investors. (Reporting by Divya Rajagopal; Editing by Sandra Maler)