Barrick Gold Corp (ABX.TO) and the Malian government have agreed to work toward resolving disputes and claims related to the Loulo and Gounkoto gold mines in Mali, according to a statement released by Barrick on Monday. This announcement follows the arrest of four Barrick employees by Malian authorities two days earlier.
The two sides are in discussions over a new mining contract that would give Mali’s military-led government increased control over the country’s resources. As one of Africa’s largest gold producers, Mali plays a crucial role in Barrick’s operations.
Barrick stated that the terms of the settlement will be disclosed once finalized. Shares of the company fell by 2% on the Toronto Stock Exchange at 2:16 p.m. ET (1816 GMT).
“The current negotiations have been challenging, but we are encouraged by the government’s recognition of the importance of maintaining the long-term viability of the Loulo-Gounkoto complex as a significant contributor to Mali’s economy,” said Barrick CEO Mark Bristow.
Malian authorities were not immediately available for comment. Barrick previously reported in July that it had invested over $10 billion in Mali’s economy over the past 29 years.
