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Investing.com -- The ongoing negotiations between the government of Mali and Canada’s Barrick Gold Corp. (NYSE:GOLD) over payments from the nation’s largest gold mine have been put on hold, according to Bloomberg report on Tuesday.
The dispute revolves around Barrick’s Loulo-Gounkoto complex. Mali’s government has demanded a settlement payment of 125 billion CFA francs ($197 million) from the Canadian mining company. In addition, Mali is urging Barrick to comply with a new mining code that was implemented in 2023, as per three individuals involved in the government’s negotiations.
The government of Mali is seeking a lump-sum payment, while Barrick is proposing a staggered payment plan over an unspecified duration, according to one source. The new mining legislation could potentially lead to Mali gaining larger stakes and royalties in the Loulo-Gounkoto complex. Moreover, this could possibly shorten the license duration for Barrick, based on the code’s provisions.
If an agreement is reached, Mali might return the 3 tons of gold it confiscated from the mine in January. The country could also release four Barrick employees who have been under detention since late November.
The duration of the suspension of talks is uncertain, and the circumstances could alter at any moment.
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