- Barrick Gold (TSX:ABX) confirmed the suspension of its operations at the Loulo-Gounkoto mining complex in Mali following the Malian government’s decision to move the site’s gold stock to a custodial bank
- This action, part of an interim attachment order, restricts Barrick from shipping gold from the complex, further preventing the sale of the gold
- In response, Barrick has temporarily halted operations while seeking a resolution.
- Shares of Barrick Gold Corp. (TSX:ABX) opened trading at C$22.14
Barrick Gold (TSX:ABX) confirmed the suspension of its operations at the Loulo-Gounkoto mining complex in Mali following the Malian government’s decision to move the site’s gold stock to a custodial bank.
This action, part of an interim attachment order, restricts Barrick from shipping gold from the complex, further preventing the sale of the gold.
In response, Barrick has temporarily halted operations while seeking a resolution. In a media release, the company emphasized its commitment to constructive engagement with the Malian government and all stakeholders to find an amicable solution that ensures the long-term sustainability of the Loulo-Gounkoto mining complex and its significant contribution to Mali’s economy and communities.
This development follows past incidents where four employees at Barrick’s Loulo-Gounkoto mining complex were charged and detained in September and November last year. The Malian government is reportedly seeking an increased share of Loulo-Gounkoto’s profits, despite already owning 20 per cent of the complex and having received more than 70 per cent of its economic benefits to date.
Barrick has warned that if the shipment restrictions persist, it will be forced to suspend operations at the 29-year-old complex. This could significantly impact Mali’s economy, cutting off approximately 5-10 per cent of the country’s annual gross domestic product, including over US$1 billion in 2023 alone. The Loulo-Gounkoto complex currently employs about 8,000 people, 97 per cent of whom are Malian nationals.
Barrick Gold is the world’s second-largest gold producer with ownership interests in producing gold mines in Argentina, Canada, Cote d’Ivoire, the Democratic Republic of the Congo, the Dominican Republic, Mali, Tanzania and the United States.
Shares of Barrick Gold Corp. (TSX:ABX) opened trading at C$22.14.
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(Top photo via Barrick Gold.)
