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Barrick seeks World Bank court intervention to prevent

Mali mine

takeover

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Mali's new mining code challenges foreign companies

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Barrick claims Mali moved goal posts on investment terms

By Divya Rajagopal

TORONTO, May 29 (Reuters) - Barrick Mining ( B ) 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.