BARRICK responds to Mali government’s claims of breaching its commitments

By Osoro Nyawangah, TORONTO Canada

The world's second-largest gold miner, Barrick Gold Corporation, has today denied the allegations made by the Malian government that it had not honored its commitments made under an agreement designed to achieve a more equitable distribution of mineral resource exploitation to the benefit of all stakeholders.

Mali yesterday October 24, accused Barrick Gold of failing to abide by commitments made in a recent agreement.

Barrick, announced on September 30 it had agreed with the government to resolve disputes over the Loulo and Gounkoto gold mines, days after Malian authorities briefly detained four Malian staff working for the company.

But in a joint statement, Mali's economy and mines ministries said Barrick had "not honoured the commitments to which it subscribed in the agreement."

In its response, Barrick said that the company and the government agreed on a negotiation framework to achieve a global resolution of their disputes.

Since that date, the company has been actively engaged with the government in pursuit of such a settlement, the terms of which will be set out in a memorandum of agreement.

“This memorandum of agreement is intended to settle outstanding differences and to establish the principles that would guide Barrick’s partnership with the government in future, including an increase in the state’s share of the economic benefits generated by the Loulo-Gounkoto complex.” Barrick said in its statement.

The company further said that in early October, Barrick made a payment to the government of FCFA 50 billion (US$85 million) in the context of the ongoing negotiations. 

“Since then, it has consistently maintained its efforts to engage with the government. While Barrick does not accept any claims of wrongdoing, it has chosen to act in good faith as a long-standing partner of Mali, aiming to resolve outstanding disputes through this memorandum of agreement.”
 
Barrick president and chief executive, Mark Bristow, said the company’s mutually beneficial relationship with successive Malian governments had endured for 30 years and occasional differences had always been amicably resolved.  “Barrick remains committed to finding a mutually acceptable solution to the current impasse in the interest of all stakeholders.” Bristow said.