Mali plans to sell gold reserves from Barrick complex to fund operations
The Malian court-appointed administrator of Barrick Mining’s Loulo-Gounkoto complex plans to sell one metric ton of gold from the site’s storeroom as operations resume after a six-month suspension. Barrick temporarily halted mining in January due to the government seizing gold stocks. Former health minister Soumana Makadji is overseeing operations with the state mining company’s chairman. The complex accounted for 15% of Barrick’s gold output before the suspension, impacting national gold production and reflecting broader Mali-miner conflict.
Barrick CEO Mark Bristow expressed concern over the restart and gold sale, calling it illegitimate. The plant restarted on Monday, with Makadji and Mali’s mines ministry yet to respond to queries. Barrick suspended operations after Mali blocked exports and detained executives, leading to international arbitration. The company’s two-year standoff with Mali’s government involves tax disputes and refusal to adopt a new mining code.
Gold prices have risen 25% this year to date, reaching $3,500 per ounce in April. Selling a ton of gold from Loulo-Gounkoto would be a significant move by Makadji, aiming to finance operational expenses. Barrick vows to challenge the government’s actions in international courts. Makadji assured staff and subcontractors of maintaining salaries and resuming operations, facing significant challenges ahead.
Barrick faces obstacles in resuming normal production pace at Loulo-Gounkoto, with uncertainty under the provisional administration. The complex’s all-in sustaining cost for the quarter ended December 2024 was $100 million. Barrick has restricted intranet and email access in Mali since losing control of the complex. Key expatriate staff may be challenging to recall, with some leaving last year due to detainment threats. Malian staff have been reassigned or resigned, while contractors remain unpaid since January.
Read more at Yahoo Finance: Exclusive-Mali plans to sell gold reserves at Barrick complex to fund operations