UNLESS the blockage of gold shipments from Barrick Gold Corporation’s Loulo Gounkoto mine in Mali is lifted, Barrick will be obliged to suspend operations at the mine, CEO Mark Bristow warned on Monday.
While this would be a big step for Barrick, as Loulo Gounkotois considered one of its “tier one” assets, it would be an even more serious blow to the economy of Mali. Loulo Gounkotoaccounts for 5-10% of Mali’s GDP and employs 8,000 people. In 2023 Barrick contributed over $1bn to the Malian economy. The government of Mali owns 20% of the mine and to date has received over 70% of the economic benefits, Bristow said.
The blockade of gold shipments from the mine follows the recent detainment of senior Barrick employees in Mali and the issue of an arrest warrant for Bristow. Last week Resolute Mining’s CEO, Terry Holohan, and two other Resoluteemployees were released after ten days of detention by the Malian government. The release followed Resolute Mining’s agreement to abide by Mali’s new Mining Code introduced in 2023 and pay $160m to the government in settlement of tax claims – which initially Resolute said were unsubstantiated.
Bristow said in a statement that the 2023 Mining Code did not apply to existing mines such as Loulo Gounkoto but Barrick had been engaging with the government over the past 12 months to address its demand for an increased share of the mine’s economic benefits. Barrick had “shown a willingness to compromise beyond its legal rights” and remained “open to constructive engagement with the government to resolve these issues”.
These developments were eroding investor confidence in the economy of Mali and would deter further investment, Bristow said.
Mali, which experienced coups in 2020 and 2021, is currently ruled by a military junta.
