Latest news with #DivyaRajagopal
Yahoo
6 hours ago
- Business
- Yahoo
Canada's Allied Gold could look at options for power supply deal at Sadiola mine
By Divya Rajagopal TORONTO (Reuters) -Canadian miner Allied Gold could look at alternative options for a power supply deal at its Sadiola mine in Mali following a surge in gold prices and the emergence of new opportunities, its CEO told Reuters in an interview on Monday. The gold miner signed an agreement in February with UAE-based Ambrosia Investment, giving Ambrosia a 50% stake in the mine in return for installing a new power supply system that would have improved the mine's costs. Allied Gold was also supposed to receive $500 million, with approximately $250 million in upfront cash consideration from Ambrosia. The deal is yet to close. Allied Gold CEO Peter Marrone said the deal may close in June, but if it does not, it is because other options have become available to the company. "Our position in the country has changed dramatically along with gold prices," Marrone said. "The world has changed since we put the deal together." Gold prices have surged nearly 30% this year to date and hit a record $3,500.05 per ounce on April 22. Ambrosia Investment did not immediately respond to a request for comment. Marrone said the universe of power solutions for the company changed dramatically after Allied Gold signed a new mining convention with the Mali government last year. Mali is Africa's third-largest gold producer and the military-led government wants to increase revenue from the mining sector. The government believes current arrangements are unfair and has said that foreign multinationals must comply with its demands if they want to continue operating. The country is in dispute with another Canadian miner, Barrick Mining, which is the only gold miner that has not signed Mali's new mining code. Allied Gold said it took a pragmatic approach to settling with the government. "We looked at how best we can deliver returns to our investors, and came to the conclusion that let's take an action based on cooperation and support," Marrone said. Allied Gold, already listed in Toronto Stock Exchange, began its dual listing on Monday on the New York Stock Exchange. (Divya Rajagopal in Toronto; Editing by Nia Williams) Sign in to access your portfolio
Yahoo
7 hours ago
- Business
- Yahoo
Canada's Allied Gold could look at options for power supply deal at Sadiola mine
By Divya Rajagopal TORONTO (Reuters) -Canadian miner Allied Gold could look at alternative options for a power supply deal at its Sadiola mine in Mali following a surge in gold prices and the emergence of new opportunities, its CEO told Reuters in an interview on Monday. The gold miner signed an agreement in February with UAE-based Ambrosia Investment, giving Ambrosia a 50% stake in the mine in return for installing a new power supply system that would have improved the mine's costs. Allied Gold was also supposed to receive $500 million, with approximately $250 million in upfront cash consideration from Ambrosia. The deal is yet to close. Allied Gold CEO Peter Marrone said the deal may close in June, but if it does not, it is because other options have become available to the company. "Our position in the country has changed dramatically along with gold prices," Marrone said. "The world has changed since we put the deal together." Gold prices have surged nearly 30% this year to date and hit a record $3,500.05 per ounce on April 22. Ambrosia Investment did not immediately respond to a request for comment. Marrone said the universe of power solutions for the company changed dramatically after Allied Gold signed a new mining convention with the Mali government last year. Mali is Africa's third-largest gold producer and the military-led government wants to increase revenue from the mining sector. The government believes current arrangements are unfair and has said that foreign multinationals must comply with its demands if they want to continue operating. The country is in dispute with another Canadian miner, Barrick Mining, which is the only gold miner that has not signed Mali's new mining code. Allied Gold said it took a pragmatic approach to settling with the government. "We looked at how best we can deliver returns to our investors, and came to the conclusion that let's take an action based on cooperation and support," Marrone said. Allied Gold, already listed in Toronto Stock Exchange, began its dual listing on Monday on the New York Stock Exchange. (Divya Rajagopal in Toronto; Editing by Nia Williams)
Yahoo
26-05-2025
- Business
- Yahoo
Judge to hear Mali's request to reopen Barrick mine under new management, official says
By Portia Crowe and Divya Rajagopal DAKAR/TORONTO (Reuters) -A court in Mali will hold a hearing on Thursday to consider a request made by Mali's military government to reopen Canadian miner Barrick's Loulo-Gounkoto gold mine under a provisional administration, a court official said. Granting the request would represent a major escalation of a dispute between the West African country and the Canadian miner after operations at the complex were suspended in January in a dispute over taxes and ownership. Souleymane Maïga, vice president of the Tribunal de Commerce of Bamako, told Reuters there will be a filing process and preparation of the case on Thursday. Three sources told Reuters earlier on Wednesday a judge was expected to rule on Mali government's request to put Barrick's mines under new provincial management. In its earnings update on May 7, Barrick said it had on April 17 received a notice from the government threatening to impose provisional management unless the mines resumed operations by April 20. Barrick Mining, previously called Barrick Gold, and Mali's government have been at odds since 2023 over the implementation of a new mining code that raises taxes and gives Mali's government a greater share in the gold mines. Barrick has said it can only resume operations when the Malian government removes restrictions on gold exports. Operations at the mines were halted after the government seized around 3 metric tons of gold worth some $317 million at last week's price, accusing the company of not fulfilling its tax obligations. The government had been blocking Barrick's gold exports since early November. As a shareholder with a 20% stake in the facility, Mali's government requested reopening of the mining complex under provisional administration at the Tribunal de Commerce de Bamako Court, two of the people said. If the judge agrees, a new management body would be appointed to reopen and run the mines, the sources said. Spokespersons for Barrick and Mali's Mines Ministry did not immediately respond to requests for comment. The latest development comes as the two sides negotiate a memorandum of understanding to resolve the dispute. Barrick CEO Mark Bristow told Reuters this month that the two sides had come close to reaching an agreement three times. Reuters reported in February that Barrick had signed an agreement to end the dispute, under which it would pay a total of 275 billion CFA ($438 million) to the government in return for the release of four detained managers and its seized gold. The agreement went to the Malian government for approval. The government's justification for not approving the agreement was that Barrick had signed the "wrong" document, according to one of the people, who is familiar with the government's position. Another source said the government has also asked for additional payment. The person familiar with the government's position said any additional money demanded by the government would be in line with taxes the company has not paid since suspending operations. Barrick in December 2024 launched an international arbitration case against Mali regarding the dispute. A lawyer familiar with the dispute said provisional administration could be an attempt by Mali to expropriate Barrick's assets. Sign in to access your portfolio
Mint
25-04-2025
- Business
- Mint
Barrick Gold contractors in Mali lay off staff amid government dispute -documents, sources
Subcontractors face liquidation, work stoppages due to dispute Highlights uncertainty over Barrick's Loulo-Gounkoto operations Hundreds of jobs at stake Some Barrick employees being relocated to DRC By Portia Crowe and Divya Rajagopal DAKAR, April 25 (Reuters) - At least four subcontractors employing several hundred people at Barrick Gold's complex in Mali are laying off staff following a two-year dispute between the Canadian miner and the state, according to documents seen by Reuters and people familiar with the matter. Some of the subcontractors said they have not received any payments from Barrick for months. The layoffs indicate that the dispute between the world's No. 2 gold producer and the West African nation is not expected to end anytime soon. Operations at Barrick's Loulo-Gounkoto complex, a major source of gold production for the Toronto-based company and the largest mining operation in Mali, have been suspended since January after the government seized around 3 metric tons of gold stock from it, accusing the company of not fulfilling its tax obligations. Mali's government, which took power after coups in 2020 and 2021 and introduced a new mining code in 2023, had been blocking the company's gold exports since early November. Boart Longyear's local subsidiary, BLY Mali, said in a letter dated Friday that it was liquidating the company following the suspension of its contract with Barrick on January 25, which it said "placed BLY in an irremediably compromised situation." It employed 98 people at the complex as of March, according to a document seen by Reuters. ETASI, a heavy equipment rental company, said in a letter dated Wednesday and seen by Reuters on Friday that it would suspend all personnel. It employed 68 people as of last month, according to the same internal document. A work-placement firm representing ATC, a metal construction company, sent letters to employees notifying them that they were being laid off following the expiry of a three-month temporary work stoppage that began earlier this year, according to a source who shared one of the letters, dated Tuesday and seen by Reuters on Friday. ATC employed 45 people at the mining complex as of January but only four as of March, according to the internal document. Some of the employee figures could be higher. MAXAM, a civil explosives subcontractor for the Loulo-Gounkoto complex, will announce a temporary work stoppage for most of its employees in Mali as soon as Saturday, according to a person familiar with the matter and a letter seen by Reuters. But while the internal document lists the subcontractor as having 69 employees at the site as of March, the source said the real figure is nearly double that - over 120 - because its employees work in rotations. Geneva-based subcontractor SGS, meanwhile, was granted a three-month temporary work suspension beginning February 1 and due to expire next week, according to a government document seen by Reuters on Friday. It is unclear what steps will be taken after its expiry. Spokespeople for BLY, ETASI, ATC, SGS and MAXAM did not immediately respond to requests for comment, nor did spokespeople for Barrick Gold and Mali's mines ministry. ESCALATION Last week, Malian authorities shut Barrick's office in the capital Bamako over the alleged non-payment of taxes, an escalation of the dispute. Barrick employees have continued to receive their salaries despite the office closure and suspension of operations at the mining complex, according to a person familiar with the matter. Nearly 40 Malian Barrick staff from the Loulo-Gounkoto complex are being at least temporarily transferred to Barrick's Kibali mine in Democratic Republic of Congo, according to the same person, who said the transfers are part of a first wave but that 100 Malian staff in total have been identified for relocation. Barrick in February signed an agreement to end the dispute, but the Malian government has yet to approve or execute it. (Reporting by Portia Crowe; Additional reporting by Divya Rajagopal in Toronto; Editing by Veronica Brown and Marguerita Choy) First Published: 26 Apr 2025, 02:21 AM IST
Yahoo
25-04-2025
- Business
- Yahoo
Exclusive-Barrick Gold contractors in Mali lay off staff amid government dispute -documents, sources
By Portia Crowe and Divya Rajagopal DAKAR (Reuters) -At least four subcontractors employing several hundred people at Barrick Gold's complex in Mali are laying off staff following a two-year dispute between the Canadian miner and the state, according to documents seen by Reuters and people familiar with the matter. Some of the subcontractors said they have not received any payments from Barrick for months. The layoffs indicate that the dispute between the world's No. 2 gold producer and the West African nation is not expected to end anytime soon. Operations at Barrick's Loulo-Gounkoto complex, a major source of gold production for the Toronto-based company and the largest mining operation in Mali, have been suspended since January after the government seized around 3 metric tons of gold stock from it, accusing the company of not fulfilling its tax obligations. Mali's government, which took power after coups in 2020 and 2021 and introduced a new mining code in 2023, had been blocking the company's gold exports since early November. Boart Longyear's local subsidiary, BLY Mali, said in a letter dated Friday that it was liquidating the company following the suspension of its contract with Barrick on January 25, which it said "placed BLY in an irremediably compromised situation." It employed 98 people at the complex as of March, according to a document seen by Reuters. ETASI, a heavy equipment rental company, said in a letter dated Wednesday and seen by Reuters on Friday that it would suspend all personnel. It employed 68 people as of last month, according to the same internal document. A work-placement firm representing ATC, a metal construction company, sent letters to employees notifying them that they were being laid off following the expiry of a three-month temporary work stoppage that began earlier this year, according to a source who shared one of the letters, dated Tuesday and seen by Reuters on Friday. ATC employed 45 people at the mining complex as of January but only four as of March, according to the internal document. Some of the employee figures could be higher. MAXAM, a civil explosives subcontractor for the Loulo-Gounkoto complex, will announce a temporary work stoppage for most of its employees in Mali as soon as Saturday, according to a person familiar with the matter and a letter seen by Reuters. But while the internal document lists the subcontractor as having 69 employees at the site as of March, the source said the real figure is nearly double that - over 120 - because its employees work in rotations. Geneva-based subcontractor SGS , meanwhile, was granted a three-month temporary work suspension beginning February 1 and due to expire next week, according to a government document seen by Reuters on Friday. It is unclear what steps will be taken after its expiry. Spokespeople for BLY, ETASI, ATC, SGS and MAXAM did not immediately respond to requests for comment, nor did spokespeople for Barrick Gold and Mali's mines ministry. ESCALATION Last week, Malian authorities shut Barrick's office in the capital Bamako over the alleged non-payment of taxes, an escalation of the dispute. Barrick employees have continued to receive their salaries despite the office closure and suspension of operations at the mining complex, according to a person familiar with the matter. Nearly 40 Malian Barrick staff from the Loulo-Gounkoto complex are being at least temporarily transferred to Barrick's Kibali mine in Democratic Republic of Congo, according to the same person, who said the transfers are part of a first wave but that 100 Malian staff in total have been identified for relocation. Barrick in February signed an agreement to end the dispute, but the Malian government has yet to approve or execute it. Sign in to access your portfolio
