Barrick Gold CEO Mark Bristow warns that the ongoing dispute between the company and the Malian government could deter investment in West Africa. Bristow highlights the importance of a transparent and equitable relationship between mining companies and governments for attracting investment and fostering development in emerging economies.
The resolution of a dispute in Mali could be crucial to how investors view West Africa , Barrick Gold chief executive Mark Bristow told Mining Journal at the Future Minerals Forum in Riyadh, Saudi Arabia on Wednesday. A dispute between Barrick and the government of Mali has grown in intensity in recent months, with the government claiming the company owes more than US$500 million in taxes, which the company denies.
The government has detained Barrick workers, issued an arrest warrant against Bristow, restricted the company from shipping gold from its Loulo-Gounkoto mining complex and seized gold estimated at about $245 million in value. Its actions saw Barrick temporarily suspend Loulo-Gounkoto operations this week as it seeks a negotiated solution. 'It is dynamic, is probably the best way to describe the situation, and we are very focused on finding a solution,' said Bristow. Bristow is clearly pained by the situation as Mali was a pivotal country in the development of Randgold Resources, where he was chief executive prior to its merger with Barrick in 2019, and where he has been a key contributor to the country's economy for many years. 'Mali is the very foundation of my business development. That's where we started making our resources. We've had a very strong relationship with Mali and its people, and its many governments over time,' said Bristow. Bristow said the actions of the government of Mali could cast a pall over other parts of Africa in investors' minds by creating a perception that governments will attempt to strongarm companies in order to increase the government take. In November 2024, the government detained Resolute Mining's chief executive Terence Holohan, releasing him after the company agreed to pay $160 million. 'This is a conversation that's important for Africa, because it's about how to create investability. It is a complex situation, some of it built on misunderstanding, but as I grew up in South Africa at the end of apartheid, that dialogue is the only way to solve issues.'… The debate is around understanding who we are, what we've done and what we stand for, and we stand for very clear and transparent benefit sharing. …Mali, historically, was a place that attracted investments. The question is, how do we get it back there? How do we open up and educate everyone through full transparency? … As we get closer to be able to have an open and frank dialogue, we will definitely find a solution on the way forward for Mali,' said Bristow. Bristow reflected that investors and companies in the mining space have looked to deploy investment in developed countries like Canada that are perceived as lower risk, which limits the use of investment as a development tool in countries that critically need it. 'It is not just about mining metals, it's about making a difference. This world needs investments in the emerging and developing economies, and that is where the challenge lies for a better future for everyone on this planet. This world needs to invest in the emerging countries to be able to uplift people out of poverty and create a future,' said Bristow. Public facing On stage however, Bristow refused to be drawn on the subject of the company's recent troubles in Mali. 'That's a very unique situation,' he said in response to a direct question about the seizure of US$245 million in gold from the Loulo-Gounkoto complex by the Malian ruling military junta. Bristow was on stage at the Future Mineral Forum in Riyadh, taking part in a panel on mining and development. Despite Barrick's recent troubles, Bristow stuck to his guns in defence of mining as a driver of development. 'What we need is to uplift and industrialise the word... if you industrialise the world you change it for the better.' 'We privileged people are denying the majority of people on this planet an opportunity to develop'. Cutifani support Bristow had support on stage from another mining legend, Mark Cutifani. The Vale Base metals boss told the conference that the benefits of mining were beyond debate. 'The question about government policy, and how policy supports mining that is inclusive is the real debate.' But Cutifani warned that demands for downstream development and expansion by developing countries would be difficult to meet. 'Everybody wants everything today.' 'Jumping downstream to a refinery that costs twice as much as a mine and has a tenth of the margin doesn't work for a mining company.' John Morrison, chief executive officer of the Institute for Human Rights and Business agreed, telling the audience 'development is a right'. But speaking on a subsequent panel, Zambian mining minister Paul Kabuswe struck a more cautious note about the effect of mining on development. 'Has Africa been given the chance to develop? by who?' Kabuswe said. 'Africa is endowed with massive resources,' he noted. 'The people that have been leaders, have they given Africa the chance to develop? some yes, some no',
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