Mali: Barrick’s CEO says ‘difficult decision’ must be made soon on reopening its gold mine amid dispute

Barrick Gold’s CEO Mark Bristow has said operations at its shuttered Loulo-Gounkoto mine in Mali will restart once the country’s junta authorities allow it to resume gold shipments.

Operations at the site were halted in January 2024 after the Malian government blocked gold shipments and seized approximately $245 million worth of gold. Bristow emphasized that the suspension could not continue indefinitely, stating that a resolution with the government is necessary within a few weeks. Barrick’s dispute with Mali centers around the country’s new mining code, which includes higher taxes and increased state ownership in mining projects. Tensions escalated when the Malian authorities detained Barrick employees and issued an arrest warrant for Bristow. The shutdown of the Loulo-Gounkoto mine, one of the country’s largest gold operations, has already impacted Barrick’s forecast, which now predicts gold output will fall to between 3.2 million and 3.5 million ounces in 2024, down from 3.9 million ounces last year.

Despite the tension, Bristow affirmed that Barrick, Mali’s largest investor, remains committed to the Sahel country, having contributed significant a revenue to its coffers. However, he cautioned that without a resolution, the mine would have to make a “difficult decision” by March to start an operation on care and maintenance at the cost of around $10 million per month, further harming both the Toronto-based miner and Mali’s economy. Bristow proposed bringing in an independent expert to assess the situation, stressing that continued disputes would only harm the people of Mali. The dispute continues as Barrick seeks arbitration to assert its rights and has warned that without a resolution, both Barrick and Mali stand to lose out. Bristow also noted that Barrick had been assured by Malian junta-led government that the gold seized by authorities still belongs to the company.