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Barrick Mulls Canadian Exit as Mali Gold Tensions Escalate
Jul. 16, 2025 09:25AM PST
The gold giant is seeking to reorient its portfolio in the face of operational turmoil abroad and record-high bullion prices.
velirina / Adobe Stock
Major miner Barrick Mining (TSX:ABX,NYSE:B) is reportedly in advanced talks to sell its last remaining Canadian mine, Hemlo, to Discovery Silver (TSX:DSV,OTCQX:DSVSF).
Citing people familiar with the matter, Bloomberg reported on Tuesday (July 15) that the discussions, which began in April, have reached the final stages, although a deal has not yet been finalized.
If completed, the sale of the Ontario-based asset would mark Barrick’s full exit from gold mining in its home country, continuing a broader strategy of offloading smaller, less profitable assets as gold re-enters the spotlight.
Gold has climbed to record highs this year, reaching the US$3,500 per ounce level as geopolitical shocks — including US President Donald Trump’s tariff campaign and ongoing global conflicts — have driven investors toward safe havens.
That rally has reignited consolidation in the mining sector, with large producers like Barrick and Newmont (TSX:NGT,NYSE:NEM) streamlining their portfolios and junior miners seeking to grow.
Discovery Silver has emerged as an active buyer during this time.
In January, the company acquired Newmont’s Porcupine gold mine in Ontario for up to US$425 million. Buying Hemlo would deepen its footprint in Canada at a time when investor interest in North American assets is rising.
Mali seizes more gold from Barrick
For Barrick, the possible sale comes as the company faces legal and political headwinds in Mali, where its Loulo-Gounkoto complex has been embroiled in a bitter standoff with the ruling military junta.
On July 10, helicopters operated by Mali’s military landed unannounced at the Loulo-Gounkoto site and removed over a metric ton of gold — worth over US$117 million at current prices — without Barrick’s consent. The gold was likely taken for sale by the government-appointed provisional administrator that now oversees the site, the company said.
This is the second such seizure this year, following a January incident in which 3 metric tons of gold were taken and all exports were blocked, forcing Barrick to suspend operations.
Barrick has since launched international arbitration proceedings at the International Center for Settlement of Investment Disputes (ICSID), citing “violations of its legal rights.”
“I want to reaffirm Barrick’s commitment to Mali, even as we navigate extraordinary and unprecedented challenges,” CEO Mark Bristow said on July 12. “While we continue to engage constructively with the government of Mali, the ICSID process provides the legal certainty and international oversight necessary to resolve this dispute definitively.”
Barrick maintains that the provisional administration of the mine, which came after a controversial local court order in June, is unlawful. The firm also says it was never formally notified of the administrator’s appointment and was merely told that Samba Touré, a former Barrick employee and advisor to the mining ministry, would act as a liaison.
The government’s moves coincide with President Assimi Goïta’s latest political maneuver — a new law granting him an indefinite mandate “until the country is pacified.” Goïta seized power in a 2021 coup, his second in less than a year, and has since tightened control over the judiciary and state institutions.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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