(Bloomberg) — Mali’s military-controlled government has issued an arrest warrant for money laundering against Barrick Gold Corp. Chief Executive Officer Mark Bristow amid an escalating dispute over mine revenues in the West African nation.
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The authorities in Mali are also seeking to arrest Abbas Coulibaly, the general manager of the Canadian mining company’s Loulo-Gounkoto complex, according to people familiar with the matter.
The warrants mark the latest measures by Mali’s government that target foreign mining companies operating within Africa’s second-largest gold producing nation. The Loulo-Gounkoto operation is significant for Barrick, accounting for nearly 14% of the Toronto-based company’s annual gold production and almost 12% of total revenue last year.
Barrick shares fell as much as 3.2% in New York on Thursday, leading stock declines of senior bullion producers as spot gold prices slipped.
“Today’s news continues to put an overhang on the stock with respect to the ongoing negotiations and any potential changes to the tax/equity interests in the complex going forward,” National Bank of Canada analyst Mike Parkin wrote in a Thursday note. “The government of Mali has taken an aggressive approach towards negotiations with mining companies in the country.”
Spokespeople for Mali’s finance ministry and justice ministry couldn’t be reached for comment. Barrick declined to comment.
The arrest warrants come after four Barrick employees were detained last month to await trial as a spat heated up on how to divide the economic benefits of Mali’s biggest gold mine. Barrick refuted the charges, saying it’ll continue engaging with the government to find an amicable settlement that ensures the long-term sustainability of the operations, according to a Nov. 26 statement.
Military Control
Under military control since 2020, Mali has strengthened its relationship with Russia and brought Kremlin-linked mercenaries to the country to combat an Islamist insurgency. European forces and United Nations peacekeepers were later forced to withdraw.
The cash-strapped authorities in Mali have been pressuring investors to pay large sums to settle claims arising from a sector-wide audit that Bristow’s firm previously described as “legally and factually flawed.” The government has either concluded or is discussing agreements for the biggest miners in the country – Barrick, Resolute Mining Ltd., Allied Gold Corp. and B2Gold Corp. – to transfer more than $840 million to the state.
