07:54 AM EST, 12/16/2024 (MT Newswires) -- Barrick Gold ( GOLD ) said Monday that it will be "compelled" to suspend the Loulo-Gounkoto operation in Mali if shipments remain suspended amid a dispute with the government.

The miner said it has been unsuccessful in reaching a final resolution with the government "despite numerous good-faith attempts to negotiate and a willingness to compromise beyond its legal rights." Mali's government owns a 20% stake in the mine.

Barrick's share price rose 0.8% at last look Monday to US$16.83 in NYSE pre-market trading.

"Barrick's proposals toward a Memorandum of Agreement, which included significant concessions, have not been meaningfully considered and have been rejected by the Government of Mali," Barrick said. "Even though the 2023 Mining Code has no application to existing operations such as Loulo-Gounkoto, the government insists on forcing Loulo-Gounkoto under the framework of that Code."

Barrick noted that it has invested over $10 billion in Mali for 29 years, with its mines contributing 5% to 10% of the country's GDP annually.

Since November 25, several senior members of Barrick's Malian management team have been imprisoned amid the dispute.

"Recent developments further erode investor confidence in Mali's mining sector and will deter future investment," Barrick CEO Mark Bristol said. "Nonetheless, in view of our long-standing commitment to the people of Mali, we remain open to constructive engagement with the government to resolve these issues while protecting the viability of this key economic driver for Mali."