Barrick Mining’s Loulo-Gounkoto Gold Mine Resumes Operations in Mali

Barrick Mining’s Loulo-Gounkoto Gold Mine Resumes Operations Under State Control

Barrick Mining’s Loulo-Gounkoto gold mine in Mali has resumed operations after a nine-month shutdown. The mine had been closed since January due to escalating tensions with Mali’s military-led government. Production restarted late last week after Barrick and the government agreed to resume payments to contractors.

Overview of the Barrick Mining Shutdown and Management Transition

The Loulo-Gounkoto mine, a major asset for Barrick, faced disputes over export blocks and employee detentions. In June, a Malian court appointed Soumana Makadji to manage the mine for six months. The dispute also involved back taxes and changes in local mining laws, leading to the government temporarily taking control of the mine.

The resumption of production followed an agreement to restart payments to contractors, including Maxam, Sandvik Group, and Etasi & Co. Despite the restart, Barrick and Makadji have not made public statements. According to Mali’s Mines Minister, the interim management will focus on production, paying workers, and benefiting the national economy.

Impact on Barrick Mining and Mali’s Gold Production

In 2022, the Loulo-Gounkoto complex produced 723,000 ounces of gold, a significant contribution to Barrick’s operations. However, the mine’s shutdown prevented Barrick from capitalizing on the gold price rally in 2023. The closure also delayed production and hurt Mali’s export revenues.

Barrick has initiated legal action against Mali, challenging the detention of four employees since November 2022. The company denies allegations of money laundering and terrorism financing, claiming that its local subsidiaries are protected from the government’s legal changes.

SuperMetalPrice Commentary:

The restart of the Loulo-Gounkoto mine marks an important milestone for Barrick Mining and Mali’s gold sector. While the shutdown affected Barrick’s ability to capitalize on high gold prices, the reopening signals potential stability. The future of the mine depends on resolving legal disputes and ensuring a stable political environment in Mali. The long-term success of operations will be shaped by how regulatory issues are addressed and how the local government manages future tensions with Barrick.