**Barrick Appeals to World Bank Amid Mali Mine Control Dispute**
**Meta Description:** Barrick Mining seeks World Bank arbitration to prevent Mali from taking control of its Loulo-Gounkoto mine, citing unfair investment terms.
**URL Slug:** barrick-world-bank-mali-mine-dispute
**Barrick Appeals to World Bank Amid Mali Mine Control Dispute**
Barrick Mining has turned to the World Bank’s arbitration tribunal for intervention in a legal battle in Mali, where the Canadian company faces the potential takeover of its Loulo-Gounkoto gold mine by the Malian government. This request comes as a local court is set to make a ruling on June 2 regarding the government’s petition to place the mine under provisional administration.
If the court rules in favor of the government, it could lead to the appointment of an individual or organization to manage the mine and resume operations. The Loulo-Gounkoto mine has been inactive since January, following the seizure of three tons of gold by the Malian authorities due to alleged tax non-compliance, a claim Barrick disputes.
In a recent filing with the International Centre for Settlement of Investment Disputes (ICSID), Barrick has requested “provisional measures” to prevent the Malian government from taking further actions that could escalate the dispute, including the proposed provisional administration of the mine. Timothy Foden, a representative from the international law firm Boies Schiller Flexner, explained that these measures aim to maintain the status quo while the arbitration process unfolds.
Mali, recognized as Africa’s third-largest gold producer, has recently implemented a new mining code that tightens its control over the sector, primarily dominated by Western companies. The military-led government asserts that it seeks to enhance revenue from mining operations, claiming that existing agreements are inequitable. Most mining firms in Mali have complied with the government’s demands, but Barrick has resisted, arguing that it has made significant investments in the country over the past two decades.
The company has accused the Malian government of altering the terms of their agreement and has raised concerns about the detention of some of its executives, which it views as an attempt to exert pressure. The government’s actions have included shutting down Barrick’s corporate office in Bamako, leading to layoffs among the company’s contractors.
An official familiar with the Malian government’s stance indicated that they believe there are no grounds for international arbitration, framing the issue as a domestic tax matter. Even if the World Bank tribunal grants Barrick’s request for provisional measures, Foden noted that Mali could choose to disregard the ruling, potentially deterring future Western investments.
As the situation develops, the outcome of the court ruling and the arbitration process will be closely watched by stakeholders in the mining industry and international investors alike.
**FAQ**
**What is the current status of Barrick’s operations in Mali?**
Barrick’s Loulo-Gounkoto mine has been closed since January due to a dispute over tax payments, and the company is currently seeking World Bank arbitration to prevent the Malian government from taking control of the mine.
