B2Gold Corp has launched international arbitration against Mali over the Menankoto exploration permit, which Mali has refused to extend for another year.
The Canadian gold miner has been in a months-long dispute over the West African country’s denial of a mining permit extension requested by the company. The permit forms part of the Anaconda area, about 20 km north of the Fekola mine, which is not affected by the dispute.
The Menankoto permit covers an area located 20 km north of B2Gold’s Fekola mine, which is in southwest Mali on the border with Senegal. B2Gold has invested about US $27 million in exploration over the last seven years.The action argues that the Republic of Mali breached its obligations to Menankoto under the Convention and under the 2012 Mining Code.
Extension application
The arbitration will be conducted by the International Centre for Settlement of Investment Disputes in Paris, France. Menankoto originally filed an extension application for the Menankoto Permit in October 2020, under which the Menankoto permit was originally issued.
The previous government, which was ousted in a military takeover last month, had granted an exploration permit held by B2Gold to a little-known domestic company in March. The permit was up for grabs again in May when the ousted Prime Minister Moctar Ouane issued a decree cancelling the decision.
However, the Ministry of Mines, Energy and Water informed the Canadian miner that its application for permit was rejected because it was subject of a court decision, the company said on June 18. The miner said it remains committed to talks with the government to resolve the issue even as the international arbitration proceedings were launched. B2Gold said operations at the Fekola mine, which is on a different permit, are continuing normally.
