B2GOLD said production at its flagship Fekola mine in Mali had been unaffected by the political crisis that deepened overnight with the resignation of the West African country’s president Ibrahim Boubacar Keita following a military mutiny.
Keita said he decided to step down in order to avoid further bloodshed. “Today, certain parts of the military have decided that intervention was necessary. Do I really have a choice? Because I do not wish blood to be shed,” Keita was quoted as saying in a brief statement broadcast on national television.
Mali produced about 65 tons of gold last year – equal to some two million ounces – an increase of 7% year-on-year. Notable gold producers include Barrick Gold, Resolute Mining, Endeavour Mining and AngloGold Ashanti.
Barrick Gold said its Loulo-Gounkoto mining complex had not been affected by the political situation in Mali and operations there were continuing as normal.
“The complex has an adequate inventory for its foreseeable requirements and management has taken steps to secure its supply lines,” it said. Barrick was “… monitoring the situation closely in consultation with local stakeholders”.
Hummingbird Resources, which has been operating in Mali since 2015, said its Yanfolila mine, which is 280km from Mali capital, Bamako, was unaffected by political developments. Australia’s Resolute Mining said the crisis had “no impact” on production at its Syama mine in the south of the country, or on the safety of employees and contractors, according to a report by Reuters.
Fekola is of critical importance to B2Gold: of 239,574 ounces in June quarter gold production, some 147,424 oz – about 61.5% – was from Fekola.
B2Gold said it “… continues to monitor the evolving political situation in Mali” but that Fekola had “not been affected in any way” and that the mine had sufficient supplies to meet its third quarter budget and beyond “if needed”.
The Fekola mill expansion also remained on schedule, said B2Gold. “No operational days have been lost due to the political situation in the country and all of B2Gold’s mine personnel are safe,” the company said.
Shares in B2Gold moved just under 7% lower in Toronto on Tuesday far out of keeping with the performance of peer group gold miners Endeavour Mining and Centamin. According to Aljazeera, it was unclear if the military were now controlling Mali which has been in foment since March at least.
Keïta had secured a second five-year term in 2018, but his administration faced increased opposition over a rise in jihadist violence and an economic crisis. In July, Keita, announced the dissolution of the country’s constitutional court in an attempt to calm unrest.
B2Gold said it had enjoyed “a positive relationship with the Government of Mali from the beginning of its investment in the country”. The company had invested $1bn to date on the Fekola mine which employed 2,200 people, most of them Malians.
The State of Mali has a 20% ownership in the Fekola Mine.
