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Iraq claims Kurdish authorities refuse to allow it to send oil through their pipeline
The Iraqi 'oil ministry' said that the Kurdistan Regional Government?refused it to use a pipeline for an alternative route for crude shipments disrupted by?the Iran _conflict. It accused authorities in Kurdistan of placing irrelevant conditions. Senior Kurdish officials told authorities that they would welcome the Iraqi government using the pipeline. However, Baghdad must first lift its "dollar embargo", which he called on the region. "We want to make a deal." "We want to help Iraq, and bring relief? to the markets. But this embargo has got to end first," said the official. Sources told The Daily Mail on 8 March that oil production in Iraq's southern oilfields has fallen 70%, to just 1.3 million barrels per day, as the Iran conflict has effectively closed off the Strait of Hormuz. Iraq's Oil Ministry sent a letter to the Kurdistan Regional Government in early March asking for permission to pump 100,000 barrels of crude oil per day from the Kirkuk oilfields to Turkey's Ceyhan Energy Hub through the Kurdistan Pipeline Network, according to two oil officials last week. The Kurdish official stated that they were pressing to end what he said was a ban on the region’s banks being able to access dollars for importing goods through its borders and airports. Kurdish officials claim that tensions have increased with Baghdad after the federal government implemented a new electronic system to monitor imports and revenue. The KRG views this as a move undermining their autonomy and control over trade. Iraq's Oil Ministry said that the?Kurdistan Regional Government’s Ministry of Natural Resources had "set up a number conditions unrelated to crude oil exports." Reporting by Muhammad Al Gebaly; Editing by Andrew Heavens
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After a terminal attack, an Indian vessel leaves Fujairah in the UAE
India's Government said that an Indian flagged vessel, loaded with 80.800 metric tonnes of Murban oil from the United Arab Emirates, left Fujairah on Sunday. This was a day after sources reported that'some loading operations were suspended' at the UAE port. Sources said that oil loading operations in the UAE's Fujairah, a major hub for bunkering and crude export, have resumed following a Saturday drone attack and fire. However, it is unclear whether the operations are back to normal. India's Ministry of Petroleum and Natural Gas stated that the vessel, Jag Laadki was loading oil at Single Point Mooring when Fujairah Terminal was attacked. The statement stated that the vessel and all Indians on board were safe. Fujairah is outside the Strait of Hormuz and the "outlet" for UAE Murban crude oil. This volume is equal to 1% of global demand. Since the United States, Israel and other countries began a bombing on Iran in February, Tehran has stopped traffic through the Strait. The strait runs past its coast. Around 20% of the world's oil and seaborne natural gas are supplied through it. A spokesperson for the Indian foreign ministry said that India has sought safe passage to 22 of its vessels, which are stranded in the Strait of Hormuz west of Iran. This comes after Iran granted a few Indian ships a rare exception to their blockade. Two Indian flagged LPG carriers carrying 92,712 tons of LPG each, Shivalik Nanda De, and headed to India, both crossed the Strait of Hormuz Saturday. The ships are expected to arrive in Mundra, India on March 16, and Kandla, India on March 17. (Reporting and editing by Aide Lewis in Mumbai, Vibhuti sharma)
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US airline CEOs call on Congress to resolve the standoff and pay airport security personnel
The CEOs from major U.S. Airlines urged Congress to act quickly on Sunday to end the 29-day partial shutdown of the government that has forced 50,000 security officers at airports to work without being paid, warning it could disrupt U.S. air travel. Travel disruptions at major airports due to the absence of Transportation Security Administration? officers have been occurring for the past week. This is alarming, as spring break travel continues. In an open letter addressed to Congress, the CEOs of American Airlines, United Airlines, Delta Air Lines, Southwest Airlines, JetBlue Airlines, Alaska Air, and other airlines wrote: "Too many travellers are waiting in extremely long and painfully slow lines at checkpoints." First, they should come together to agree on funding the Department of Homeland Security. They added that they needed to take action so this problem would never happen again. A 43-day shutdown of the government caused widespread flight disruptions last fall. The FAA then ordered a 10% cut in flights at major airports. "Once more, air travel is the political football amid another government shut down," wrote CEOs. The group of airline executives, which includes senior executives from FedEx, UPS, and Atlas Air, called for legislation that would ensure critical government aviation staff are paid during future shutdowns. Both parties of senators failed to succeed in their competing attempts on Thursday to fund the TSA. The TSA reported last week that over 300 officers had quit since the shutdown started. Homeland Security Department funding expired on February 13, after Congress failed in its efforts to reach an agreement on the immigration enforcement reforms that Democrats demanded. The airlines are anticipating a record spring travel period. 171 million passengers will fly during this period, an increase of 4% over the same period last year. Some airports, like Houston Hobby,?New Orleans, and Newark, reported that security lines were longer than two hours last week as TSA absences increased. On Saturday, Newark also said it experienced higher-than-normal delay. The CEOs wrote: "Americans in your districts and states are tired of the?long queues at airports?, travel delays?and flight cancellations? caused by shutdowns after shutdowns? Some airports have closed security checkpoints, while others are raising money to pay TSA workers for food and other necessities. (Reporting and editing by Jamie Freed; David Shepardson)
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Trump asks allies to secure Strait of Hormuz, as Iran promises to increase retaliation
Iran has threatened to escalate tensions across the Middle East in retaliation for American airstrikes against its energy hub and the?U.S. Donald Trump called on friendly nations to send warships into the Strait of Hormuz to secure it, as there was no sign of a 'war' ending Sunday. The U.S. and its allies are facing high energy prices due to the fact that Iran can stop shipping through the Strait of Hormuz, which is a major channel for shipping oil and gas. "Countries that receive oil through the Hormuz Strait are responsible for that passage and we will assist a lot!" Trump posted a message on social media Saturday. "The U.S. also will coordinate with these Countries to ensure that everything runs smoothly and quickly." Both sides seemed to be preparing for a prolonged conflict as the conflict entered its third week. Three sources with knowledge of the situation said that Trump's administration has rebuffed Middle Eastern allies who wanted to begin diplomatic negotiations aimed towards ending the conflict. Iran has also shown a?defiance', refusing to accept any possible ceasefire until U.S. airstrikes and Israeli strikes are over. Iranian forces continue to strike. The U.S. urged U.S. citizens to leave Iraq following a missile strike on the U.S. embassy in Baghdad on Friday night. According to reports by governments and state-run media, since Israel and the United States started air attacks against Iran on February 28, more than 2,000 have died, mainly in Iran. The semi-official Fars News Agency reported on Saturday that at least 15 people were killed in an airstrike against a factory producing refrigerators and heaters in Isfahan. Iran called for civilians to evacuate UAE ports, docks and "American hiding places", saying that U.S. forces were targeting Iran from these areas. The UAE has denied that the attacks on Iran's Kharg Island overnight Friday came from its territory. Iran's Islamic?Revolutionary Guard Corps called any facility associated with the United States as a "legitimate" target and urged all U.S. companies to leave the region. The oil market disruptions are unlikely to stop anytime soon. Sources in industry and commerce said that some oil-loading activities were suspended after a drone strike in Fujairah, the UAE's emirate of Fujairah, which is a global ship-refueling center. Civil defence forces were still battling a fire that was caused by falling debris as late Saturday night. 'BOMBING the HELL OUT of the SHORELINE' Trump spent his weekend in Florida at his Mar-a-Lago Resort, where he maintained a low-profile on Saturday while posting to his Truth Social account. In one of his posts, Trump expressed the hope that China, France and Japan would send warships to the Strait of Hormuz. No one from these countries has indicated that they will do so. French officials announced on Friday that their government is pushing forward with efforts to form a coalition for the Strait of Hormuz after the security situation has stabilized. British Ministry of Defence spokesperson stated on Saturday that "we are currently discussing a range of possible options with our partners and allies to ensure the safety of shipping in the area." The Iranian Supreme Leader Mojtaba Khmenei who succeeded his father has stated that the Strait of Hormuz must remain closed. Separately Abbas Araqchi, the Iranian Foreign Minister, dismissed the speculation of U.S. Secretary of Defense Pete Hegseth claiming Khamenei had been wounded and was likely disfigured. "There is nothing wrong with the new Supreme Leader. Araqchi said to?MS Now that he sent his message yesterday and will fulfill his duties. Khamenei did not appear in public on Thursday, but instead issued a statement read by a TV presenter. Iran downplayed the extent of damage to?Kharg Island. The U.S. claimed that it targeted military targets, and not energy-related ones, on the island. It is located about 24 km (15 miles) off the coast of Iran in the Gulf. U.S. Central Command reported that it had hit more than 90 sites in Kharg including missile storage bunkers, naval mine storage, and other military targets. Araqchi stated that Iran will respond to "any attack" on its energy infrastructure. Iran's Ministry of Defense announced on Saturday that 9 ballistic missiles and 33 drones had been launched by Iran toward the UAE. Iran has warned residents in Dubai to avoid areas near the ports of Jebel Ali and Khalifa in Abu Dhabi, and Fujairah in the UAE. It also said that it is targeting U.S. bank branches in the Gulf. Fujairah is the UAE's Murban crude-oil exporter. It receives about 1 million barrels of oil per day, which is about 1% of global demand.
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Why is the port of Fujairah important to the oil industry?
After a Saturday drone attack and fire, some oil-loading activities have been suspended at the United Arab Emirates’?Fujairah Port, a global hub for refuelling vessels?aswell as crude fuel and exports. Why Does FUJAIRAH Matter Globally? According to Kpler, Fujairah exported a total of 1.7 million barrels of crude oil per day and refined fuels in average during the past year. This volume is equivalent to 1.7% of world daily demand. Fujairah is situated on the Gulf of Oman and is approximately 70 nautical mile from the Strait of Hormuz which is currently closed because of the Iran conflict. This increases the importance of Fujairah to the global market. In 2025, it will sell 7.4 million cubic metres (roughly 7.33 million tons) of marine diesel fuels, ranking fourth in the world behind Singapore, Rotterdam, and China's Zhoushan. Why is it important to the UAE? The UAE operates a pipeline capable of transporting 1.5 million barrels per day (bpd) of crude oil to bypass the Strait of Hormuz. The Abu Dhabi Crude Oil Pipeline, also known as Habshan-Fujairah Pipeline transports oil from Abu Dhabi to Fujairah. The UAE crude grade Murban is loaded at the port and sold mainly to Asian buyers. Fujairah, OPEC's largest?crude producer, would be forced to cut production if there were significant disruptions in Hormuz. Why is it important to the Crude and Fuel Markets? The port has an 18 million cubic metre storage capacity, making it a top hub in the world for storing fuels and crude oil as well as for blending operations. Blending is the process by which different petroleum components are mixed to produce finished products, such as gasoline and bunker fuels, that meet specific standards. VTTI Vitol ADNOC Vopak and other global storage companies are present at the port. Fujairah Oil Industry Zone has the largest commercial storage capacity in the Middle East for refined products.
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India is seeking passage for other vessels that are stranded in the Strait of Hormuz area after a few have sailed through
A spokesperson for the Indian Foreign Affairs Ministry said that India had'sought safe passage' for 22 of its vessels, which were stranded in the Strait of Hormuz west of Iran. This was after Iran permitted a few Indian ships, as a rare exception, to sail through. Randhir Jaiswal said at a press briefing that India had stayed in contact with all the major players in the Middle East, including Iran, the U.S., and Israel, to communicate its priorities. Mohammad Fathali, Tehran's ambassador to India, confirmed Iran had allowed certain Indian vessels to pass through the Strait of Hormuz. He was speaking at the India Today conclave, New Delhi. Since the United States launched an air campaign against Iran, Tehran has stopped traffic in the Strait of Hormuz, which runs along its coast. Around 20% of the world's oil and liquefied gas are transported through this strait. India has experienced its worst gas shortage in decades as a result of the blockade. The government cut supplies to industries and households to protect them from any shortages. Rajesh Kumar Sinha, the special secretary of the Indian shipping ministry, said that the stranded vessels include four crude oil ships, six liquefied?gas carriers, and one liquefied?natural gas vessel. Sinha stated that two Indian vessels chartered by the Indian Oil Corp., Shivalik, and Nanda Devi, had safely navigated the strait. They would be reaching the western Indian port of Mundra, and Kandla, on March 16 and 17. He said that the vessels carry together more than 92,000 metric tons of liquefied gas. Jaiswal stated that India was also working to achieve consensus among BRICS countries on a 'position' regarding the Middle East - conflict. India is the current?chairman of the BRICS countries, which originally consisted of Brazil, Russia India China and South Africa. The group has now expanded to include Iran. (Reporting and editing by Toby Chopra, Emelia Sithole Matarise and Shivangi Acharya)
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The Paris Mayoral race tests the support for green transformation
Marion Soulet cycles to Paris City Hall on a road that was once clogged with cars. It is now a bikeway, a symbol for the French capital’s urban green transformation. This transformation will be tested in Sunday’s mayoral elections. Soulet is pleased that leftist Mayor Anne Hidalgo has built about 1,000 km of cycle lanes over the past decade. She says this means that nearly half of Parisians ride their bicycles at least once per week. Soulet told a reporter after stopping her bike on the Rue de Rivoli that the more the city changes to accommodate cycling, the more it increases. People like it because is easy, cheap, and quick. Hidalgo, and her predecessors who were leftists in City Hall for a decade, have been working to turn Paris into a "15 minute-city" with bike lanes and more trees. The ecological legacy will be tested in the Sunday election. Hidalgo is not running, and his right-wing opponents are hoping to capitalize on voter fatigue due to the city's increasingly car-free status, disruptions caused by roadworks, and mounting debt. According to opinion polls, the winner is either Socialist Emmanuel Gregoire who wants a double-down on the green agenda or former conservative minister Rachida Datti who claims that the classic allure of Paris has been?disrupted. Sarah Knafo is a 32-year-old far right nationalist who has been rising in the polls. She could complicate the situation for Dati, if she makes it to the second round of voting on the 22nd March. Knafo is polling above the 10% threshold required to enter a run-off. Gregoire, 48 years old, polls at about 33%. Dati is 60 and on around 30%. Dati said, while greeting shoppers in northern Paris: "We are not fighting an ideological war on mobility issues." "We want everything to be organized." URBAN -TRANSFORMATION WINNS PRAISE, BUT ALSO FACE CRITICISM. Under Hidalgo's leadership, the city authorities sought to adapt Paris, France to the climate change, and make it more livable for 2 million of its residents within a larger metropolitan population. The City Hall has removed thousands of parking spaces on the streets and planted 130,000 new trees. The highways along the Seine River have been pedestrianised. According to data from the city hall, car traffic has dropped by more than 60% since 2002. The use of bicycles has also increased. The air pollution is better. Patrick Le Gales is an urbanist from the?Sciences-Po University in Paris. He said that there was criticism of the city's cleanliness and debt, which has increased by 42% in just two years. Pierre Chasseray of the 40 Million Motorists lobby group said that Hidalgo has built a Berlin Wall between wealthy residents in the centre of Paris, and those who rely on cars from poorer suburbs. He said: "We have a caricatured picture of the capital, with motorists on the one side and cyclists?on the opposite -- the good guys against the bad guys." Hidalgo is also facing viral social media posts that use the hashtag #saccageParis to highlight social blight – everything from chronic roadworks, to trash-strewn walkways. Gregoire attributed this to Hidalgo's "overambition". He said, "We did too much at once." "I would've chosen a different schedule, above all for reasons of quality implementation." DATI IS OUTFLANKED TO HER RIGHT? Dati is a lawyer with North African roots who has toned down her criticism of cycle lanes in order to condemn dirty streets. She released a video showing herself wearing a fluorescent jacket and joining garbage crews as they went about their work. She said, "The city has become increasingly dirty -- this is not a secret." Dati’s increasing moderate stance towards transportation issues - as well as the fact that she is facing a trial in September on corruption charges which she denies -- has created an opening for Knafo. Knafo unveiled an Artificial Intelligence-generated plan to return cars along the Seine's banks and to stage interviews while driving through Paris. Soulet thinks Knafo is appealing to "a small group of Parisians...who want to turn back the clock."
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Trump threatens to strike Iran’s Kharg Island oil networks if shipping routes remain blocked
Donald Trump, the U.S. president, threatened to?order attacks on the petroleum infrastructure of Iran’s Kharg Island oil center unless Tehran stopped targeting vessels in the Strait of?Hormuz. This warning could further roil the markets that are already dealing with a historic supply disruption. Trump's ultimatum was accompanied by a post on social media claiming that the United States "totally destroyed" military targets on the island. The island is the export terminal of 90% of Iran's oil, and lies approximately 300 miles (483 kilometers) northwest from the Strait. Trump wrote that U.S. strikes did not target Kharg’s oil infrastructure. However, "should Iran or anyone else interfere with the Free and Safe Passage of Ships Through the Strait of Hormuz I will immediately revisit this decision." The president said that Iran was unable to defend itself against U.S. attack. The president added that the Iranian military, as well as all those involved in this terrorist regime, would do well to lay down their weapons and save whatever is left of their country. He posted it on Truth Social. Iranian media reported that Iran's armed force responded to any attack on its oil and energy infrastructure on Saturday, saying any strikes would result in strikes on oil companies cooperating closely with the United States of America in the region. According to Iran's semiofficial Fars News Agency, which cited sources, more than 15 blasts were heard during the U.S. attack on Kharg Island. Sources said that the U.S. attacks were aimed at air defenses, airport facilities, a navy base and an airport. However, no damage was done to oil infrastructure. The markets were looking for any sign that the U.S. strike had affected the intricate network of storage tanks, terminals, and pipelines on the island. Even minor disruptions can add pressure to a volatile market. Iran's Tasnim reported that the Revolutionary Guard of Iran had carried out 'additional attacks' on Israel in conjunction with Lebanon's Hezbollah. The Israeli military announced on Friday that its air force had hit more than 200 targets, including missile launchers, air defence systems, and weapons production facilities, in central and western Iran during the last day. U.S. troops have suffered "casualties". The U.S. Military confirmed on Friday that all six crew aboard a refuelling plane that crashed in west Iraq were dead. The Wall Street Journal reported that five U.S. Air Force tanks at a Saudi Arabian base had been damaged by an Iranian missile attack and were currently being repaired. GULF AND LEBANON ARE FLASHPOINTS The oil prices have swung dramatically on Trump's shifting comments about the duration of the conflict, which began February 28th with massive U.S.-Israeli bombardments against Iran. It quickly spread to a regional war with wide implications for the global energy and stock markets. The war in Lebanon escalated as Israel's army and Hezbollah forces exchanged strikes around Beirut. Iran's Islamic Revolutionary Guard Corps, in addition to its missile and drone attacks against Israel and Gulf State allies of the U.S. has also sought to disrupt shipping along the Strait of Hormuz. This is a route for 20% of fossil energy supply around the world. Trump told reporters Friday that the U.S. Navy would "soon start" escorting oil tankers along the waterway. Trump, who has said that the war will last only a few weeks in the past, did not publicly announce an end date on Friday. He told reporters, "I cannot tell you this." "I have my own ideas, but to what end? It will be for as long as necessary." Iran continued to sell crude oil, while other Gulf producers halted their exports for fear of Iranian attacks. According to TankerTrackers.com, satellite images reviewed on Wednesday showed that multiple very large crude oil tanks were loading at Kharg. Iran exported between 1.5 million bpd and 1.1 million bpd?from February 28th to Wednesday. Bob McNally, President?of Rapidan Energy Group said Trump's Friday comments "will focus the mind of the market on ways that this energy disruption could grow and last even longer." Some industry experts expressed doubts about the safety of Kharg's oil installations. Josh Young, Chief Investment Officer at Bison interests said: "Bombing the Kharg island but not the oil pipeline is like going to McDonald's and getting a hamburger without meat." "What's your point?" The Middle East is now at war with Iran. Mojtaba Khmenei, Iran's supreme leader in his first public remarks on Thursday, vowed that the Strait of Hormuz would remain closed and urged other countries to close U.S. military bases on their soil or face being attacked. French officials say that European powers have been trying to figure out how they can defend their interests. France has consulted with European, Asian and Gulf Arab countries over the last week in order to come up with a plan to eventually escort oil tankers through the Strait. After nearly two weeks of conflict, 2,000 have died, the majority in Iran but also in Lebanon, and an increasing number in the Gulf. This is the first time that the Gulf has been on the front lines of Middle East conflict in decades. More than a million people are displaced. Beirut's suburbs were bombarded by Israeli warplanes, and Lebanon's Interior Minister said that authorities could not accommodate the hundreds of thousand people who sought refuge in Beirut.
Mali's Barrick hardball talks are being driven by two former Barrick employees
According to sources familiar with the discussions, two former Barrick Gold executives who have inside information about the Canadian miner's operations in West Africa help drive Mali's demand for a payment from the Canadian company of approximately $200 million.
Mamou and Samba Toure were both employed by Randgold in Mali, now part of Barrick, which is a mining firm.
Mali's military government, which seized in December three metric tonnes of gold worth approximately $245 million from Barrick, has given miners until Saturday midnight to respond to their demands.
According to a source with knowledge of the situation, it wants Barrick pay back taxes totaling 125 billion CFA Francs ($199m) according to a source.
Source: If the deal is finalised Mali will return the gold seized and release the four Barrick executives who have been detained since November.
Barrick has publicly announced that he is a member of the Barrick
rejected
The charges brought against its employees are not specified. According to the court documents reviewed by, these include money laundering and funding of terrorism.
Barrick declined to answer any questions regarding the current status of the negotiations, and the Mali mines ministry also did not respond.
The dispute will have ramifications on global miners, foreign investors and others who have invested billions of dollars in West Africa. They are now being forced to follow a different set of rules because the military governments of Mali Niger and Burkina Faso want a larger share of mining revenue.
Beverly Ochieng is senior analyst at Control Risks for Francophone Africa. She said that the standoff with Barrick shows just how far governments led by military forces in the Sahel region are willing to go in order to force foreign operators to adhere to new regulations aligned with their pursuit of resource nationalism.
We spoke with more than 20 people, including mining executives and consultants, diplomats, and people who had direct knowledge of the discussions, to get a better picture of the negotiation. Sources requested anonymity due to the sensitive nature of the situation.
Nine people with knowledge of the situation say that the two Toures form part of a small group on the Malian front, including junta chief Assimi Goita and the Minister of Finance and Economy Alousseini Sanou.
They are not related, despite sharing a common surname. Samba Toure was older than the other two men by several decades and was West Africa Operations Director at Randgold. Mamou worked as underground manager at the Loulo Mine.
Sources said that Mamou is the most influential negotiator in Mali due to his close relationship with the powerful Finance Minister Sanou.
Mamou’s Iventus consultancy won the contract for auditing foreign mining companies in Mali. This led to the new mining code of 2023 and the renegotiation of the miner's contracts. Samba works now for him in the consultancy.
Mamou is the current boss, said a former co-worker. Samba's technical and managerial expertise was still crucial to decision making. "The decisions are made more by Samba than Mamou."
Mamou responded to detailed questions by saying that gold production has not benefited the Mali people as it should for many decades. Mali is Africa’s second largest gold producer.
He said, "It's only natural for the state to ask for a correction." "The state made great efforts to reach an accord, which is the reason all other companies reached an agreement with state."
Samba Toure has not responded to a comment request.
ACRIMONIOUS TALKS
Barrick's talks have been acrimonious, while other Western miners, including Canada's B2Gold, Allied Gold, and Australia's Resolute, have reached deals with Mali over the past few months.
Legal disputes, arrests, nationalisations, and threats are being used by the military governments of Mali, Niger, and Burkina Faso to strengthen their ties with Russia and gain greater control over gold and uranium.
Ochieng of Control Risks, however, said that this did not mean Western operators would be unwelcome. She said that several western mining companies were allowed to expand their operations and acquire new assets, provided they met the latest taxation and regulatory demands.
The Mali junta, which will take power in 2020 has pledged to examine its mining industry so that the state can benefit from gold prices at record highs.
Some companies, such as B2Gold, were able to reach an agreement quickly. Some companies, such as Australia's Resolute whose CEO was arrested while in Mali to hold talks, took a little longer.
B2Gold said it would proceed with its planned investments at its Fekola complex this year after achieving the deal. Resolute said on Thursday that its deal with the Mali government would allow for better collaboration as the mine is developed.
The relationship with Barrick deteriorated in the last year. Barrick paid 80 million dollars to release four Malians who were arrested by the authorities in September. Mali demanded more payments, as it is owed a total amount of $350 million.
Barrick generated $949m in revenue in the first nine-month period of last year from its operations in Mali.
Bristow announced in early November that it had agreed to offer Mali 55% economic benefits from the Loulo-Gounkoto mining complex, similar to the agreement struck by the miner with Tanzania five years earlier.
Mali demanded that the remaining amount be paid in one go, rather than in installments. Mali began to block Barrick's imports in early November.
Mali claims that Barrick still has 125 billion CFA Francs to pay after discounting VAT credits.
Mali issued a warrant of arrest for Barrick CEO Mark Bristow in December 5 after four Barrick employees were again detained when no payment was received.
Contacts continued in the background. On Dec. 6, a source who spoke with Barrick senior management said that Barrick was on the verge of paying a second 50 billion CFA tranche. The payment never materialized and the conversation ceased. On Tuesday, formal talks resumed.
Freddie Brooks is a metals & Mining analyst at BMI. A FitchSolutions Company. He said that Barrick, under Bristow, had the highest level of tolerance for operational risks among major miners.
He said that if they failed to negotiate a deal with Mali's junta military, it wasn't for lack of effort.
CLASHES WITH BRISTOW
Samba Toure left Randgold nine years ago, after an argument with Bristow who was the CEO at that time.
Samba's rift grew after he resigned and was denied the right to sell his Randgold shares, based in London.
Mamou Toure left Randgold after a dispute in 2015 with Bristow regarding the use of foreign contractors.
Barrick declined to comment on the circumstances surrounding the Toures departure.
Mamou's company Iventus Mining won the consulting contract when the government announced that it would audit the mines. Two sources claim that Samba Toure was the one who led the audits.
Samba became chairman of the board in 2022 after Mali established a state-owned mine, SOREM. Mamou was appointed as a member.
However, the influence of Toures cannot be denied. Last summer, junta leader Goita grew frustrated with the negotiations and brought in the director of state security, Modibo Kone, one of the five colonels-turned-generals who lead the junta, one source said. Kone's participation in the talks was confirmed by a second source.
According to a source familiar with these talks, at least once, the Finance Minister has taken over the negotiations and told Mamou to step down when he had gone too far in his requests.
Five sources claimed that the Mines Minister, a technocrat without any military ties, had been marginalized. Mamou, however, denied this, pointing out that the ministry has two members on the commission. He said that the commission receives its orders both from the Finance Ministry and the Mines Ministry.
The Mali finance ministry and the presidency have not responded to any requests for comment. The state security service could not be reached.
Special Forces Raid
Stockpiles of gold were increasing in the "gold room" located at Loulo-Gounkoto's complex, despite exports being banned.
According to a court order dated Jan. 2, Barrick had just over 3 tons of gold in its vaults as of Dec. 27.
Unannounced, a helicopter arrived at the landing strip of the mine complex in mid-morning Jan. 11. One source said that four special forces soldiers and a customs officer, along with two officers from the state mining department and other plainclothes personnel, disembarked the helicopter and handed paperwork to Barrick employees authorizing them to seize gold.
The source added that the second shipment was made in the evening.
The gold that Barrick's mines seized is currently in the vaults at the Banque Malienne de Solidarite, a state-owned bank in Bamako. The bank declined comment.
Barrick, the company that confirmed the seizure, has announced it will suspend operations at Loulo-Gounkoto.
According to the Jan. 2, order, the seizure of Bristow's and other Barrick employee's property was taken as a precautionary measure in connection with the money laundering charges and other unspecified crimes against Bristow.
Two sources claim that Barrick has resisted the government's request to migrate to the 2023 mining code due to increased taxes.
Barrick's mining license will be renewed next year. The government has indicated that it may refuse the permit.
A source who had previously consulted with the Malian government said that the government wanted leverage in the negotiation while the company was looking to secure a long-term contract renewal at favorable terms.
The person stated, "I don't think they trust each other but no one is interested in a split-up."
Some investors are predicting a difficult road for Barrick Mali. They even think the company may lose its assets.
Martin Pradier is a materials analyst with Veritas, a Toronto-based investment research firm that covers Barrick. The exchange rate is $1 = 626.7500 CFA francs. (Additional reporting from Tiemoko and Fadimata in Bamako. Writing by David Lewis, Portia Crowe and Daniel Flynn. Editing by Silvia Aloisi, Veronica Brown, and Daniel Flynn.
(source: Reuters)