Barrick Gold releases update on situation in Mali
Barrick Gold Corp.’s [ABX-TSX, GOLD-NYSE] has released an update on its Loulo-Gounkoto operations in Mali, saying it is restricted from shipping gold from the mining complex. In addition, an interim attachment order has now been issued against the existing gold stock on site which further prevents its export and disrupts normal operations. Barrick said it believes the interim attachment order is unwarranted and in contravention of the agreed dispute resolution mechanisms.
Barrick shares moved lower on the news, easing 2.1% or 49 cents to $22.41. The shares trade in a 52-week range of $29.50 and $18.65.
Loulo-Gounkoto was expected to produce 550,000 ounces of gold this year or 14% of the company’s expected production of 4.0 million ounces.
Barrick’s President and CEO Mark Bristow says the inability to ship gold not only affects operations but has broader implications for the local economy, the 8,000 employees and its many service providers. “If this issue is not resolved within the coming weeks, Barrick will have no choice but to temporarily suspend operations at Loulo-Gounkoto,’’ the company said. “Such an action would be deeply regrettable but necessary as previously reported.’’
Barrick in December, 2024, filed a request for arbitration to the International Centre for the Settlement of Investment Disputes over the situation in Mali. Local operations in Mali have deteriorated in recent months, with several of the mining operation’s employees imprisoned and the movement of gold frozen.
Mali’s government, which took power in 2021, has sought to take a greater share of the revenue generated by the country’s gold mining industry.
The government, which owns a 20% stake in the Loulo-Gounkoto complex, has accused Barrick of failing to honor commitments made under an arrangement designed to achieve a more-equitable distribution of mineral resource exploitation.
In mid-2023, the government announced plans to overhaul the country’s mining legislation. A new mining code was adopted requiring local content in the mining sector, though existing mining titles were to remain subject to existing terms.
Barrick has refuted charges made against its employees. It has said that while the 2023 mining code has no application to existing operations such as Loulo-Gounkoto, the government insists on forcing Loulo-Gounkoto to comply with the framework of the new code.
“Barrick remains committed to constructive engagement with the Government of Mali to resolve the existing disputes amicably,” the company said.
Barrick has gold and copper mining operations and projects in 13 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia.
The portfolio includes half of the world’s top 10 tier one gold assets (defined as having a mine life of over 10 years, at least 500,000 ounces of annual production and in the bottom half of global total cash costs).
They include Cortez and Goldstrike in Nevada, Kibali in the Democratic Republic of Congo, Loulo-Gounkoto in Mali, and Pueblo Viejo in the Dominican Republic.