Key points:
- Barrick Gold aims to restart its Loulo-Gounkoto mine after shipment approval
- Mali seized $245 million in gold amid a dispute over mining regulations
- Barrick has filed for international arbitration to resolve the conflict
BARRICK Gold is set to resume operations at its Loulo-Gounkoto mine in Mali once authorities permit gold shipments, CEO Mark Bristow confirmed on Wednesday. The Toronto-based mining giant has received assurances that the $245 million worth of gold seized by Malian authorities still belongs to the company, Bristow told Reuters.
The dispute between Barrick and Mali, which began last October, centres on the implementation of the country’s revised mining code. As tensions escalated, Malian authorities detained four Barrick employees, issued an arrest warrant for Bristow, and seized gold stockpiled at the mine site. The government had already blocked Barrick’s gold shipments prior to the seizure.
Barrick’s financial performance and market response
Following the announcement of potential resumption, Barrick’s shares climbed as much as 6 percent on the Toronto Stock Exchange. The company also reported a surge in profits for the previous year, driven by rising bullion prices. Additionally, Barrick unveiled a $1bn share buyback programme, signalling confidence in its financial position.
Despite the disruption in Mali, Barrick remains a significant contributor to the country’s economy. The miner paid $460 million to the Malian government last year and had projected contributions of approximately $550 million in 2025, had operations continued uninterrupted.
Mali’s mining policies and economic impact
Mali has been pushing for higher taxes and increased state participation in mining projects, straining relationships with investors. The country’s gold output dropped by 23 percent last year to 51 metric tonnes, according to the mines ministry. Bristow emphasised that the closure of Loulo-Gounkoto has negatively affected both Barrick and the Malian government, stating that delays in resolving the dispute are financially damaging for all parties.
In response to the ongoing tensions, Barrick has initiated international arbitration proceedings against Mali to seek a resolution. Despite the challenges, Bristow reaffirmed Barrick’s commitment to Mali as a long-term investment destination.
As the dispute nears a resolution, all eyes are on whether Malian authorities will lift the shipment restrictions, paving the way for Barrick to restart one of the country’s most significant mining operations.
