TORONTO – Barrick Mining Corporation, owner of the Hemlo gold mine in northwestern Ontario, says it is "holding firm" and remains committed to the settlement of an escalating dispute with the Government of Mali.
On Monday, a judge in the African country ordered Barrick's Loulo-Gounkoto gold complex placed under provisional administration of an accountant and former cabinet minister for six months.
The company has been at odds with Mali's military rulers over taxes and alleged unfair contracts negotiated with previous regimes.
The government earlier blocked gold exports and seized gold stocks, a move that resulted in the temporary suspension of mining operations.
Last fall, four senior staff members were arrested, an action Barrick has described as an unjust attempt by the government to increase its leverage.
"These developments occurred despite Barrick's ongoing efforts to reach a constructive and sustainable resolution," it said in a prepared statement. "While the company has made a number of good faith concessions in the spirit of partnership, it cannot accept terms that would compromise the legal integrity or long-term viability of the operations."
The company said "no credible rationale" has been offered to justify the detention of its employees, and that "the government's ever-increasing demands have lacked both factual and legal foundation."
It said resolution of the dispute requires a foundation of mutual respect and sound governance, but unilateral actions by the regime risk damaging Mali's economic credibility and standing as an investment destination.
An arbitration process requested by the company in December continues before the International Centre for Settlement of Investment Disputes.
Barrick said while that process is underway, it remains committed to engaging with the government in parallel to identify a mutually acceptable solution to the dispute.
According to media reports, the company previously offered to pay the government $370 million.
Barrick has operated in Mali for nearly three decades.
Earlier this year, it was reported the company has put its last Canadian asset, just east of Marathon, on the selling block.
