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Barrick's operations in Mali halted over taxes, new mining

code

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Arbitration case ongoing

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Mali holds 20% stake in Barrick's Loulo-Gounkoto complex

(Recasts to add court official confirmation of hearing, adds

details from paragraph 13)

By Portia Crowe and Divya Rajagopal

DAKAR/TORONTO, May 14 (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 ( B ), previously called Barrick Gold ( B ), 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.

(Reporting by Portia Crowe in Dakar and Divya Rajagopal in

Toronto; Additional reporting by Fadimata Kontao in Bamako;

Editing by Veronica Brown, David Goodman, Rod Nickel and Lincoln

Feast.)