Barrick Gold Corporation is poised to resume operations at its Loulo-Gounkoto mine in Mali as soon as the country’s authorities permit the resumption of gold shipments, CEO Mark Bristow revealed in an interview with Reuters on Wednesday.
The tension between the Toronto-based gold giant and Mali has been ongoing since 2023, centered around the contentious implementation of Mali’s new mining code.
In January, Barrick was forced to suspend mining activities after the military-led government blocked gold shipments from the Loulo-Gounkoto complex and seized three metric tons of gold. However, Barrick has been reassured by the Malian government that the $245 million worth of seized gold still belongs to the company, according to Bristow, speaking from Barrick’s Toronto office.
Following the announcement, Barrick’s shares surged by over 7% in New York trading on Wednesday afternoon, driven by a report of increased 2024 profit due to rising gold prices.
The company also launched a new $1 billion share buyback program.
The dispute intensified last year when Malian officials detained four Barrick employees and issued an arrest warrant for Bristow. “We will start the operations as soon as we get approval to ship the gold, and we need to ship the gold to pay anything to the government,” Bristow explained.
Barrick contributed $460 million to Mali’s government last year and would have added about $550 million to the national treasury this year if not for the suspension. The conflict has led Barrick to revise its 2024 gold production forecast downwards to 3.2 to 3.5 million ounces from last year’s 3.9 million ounces and 4.1 million ounces in 2023.
Mali’s aggressive stance on increasing taxes and state ownership in mining projects has strained relationships with its investors. According to the nation’s mines ministry, gold production fell by 23% to 51 metric tons last year.
According to Bristow, both parties suffer from the mine’s closure, stating, “So if you calculate that to per week … and every week we don’t do this it hurts everyone.” He suggested hiring an independent expert to mediate the dispute and review the facts, noting that Mali’s new mining laws add costs that could reduce the longevity of the Loulo-Gounkoto mine.
“Ultimately, it’s the people of Mali who lose,” said Bristow. “The investors will move on to another country, another project and other opportunities.”
Barrick is uncertain about how long it can maintain the mine under temporary closure. “We can go for a couple of weeks and a month and seek closure with the Malian government,” Bristow said. “After that, we have to take a decision.”
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