What's Happening?
Operations have resumed at Barrick Mining Corp.'s Loulo-Gounkoto gold mine in Mali after a nine-month shutdown. The Canadian mining company had halted work in January following actions by Mali's military government, which included blocking exports, confiscating
gold, and arresting senior staff. A court appointed Soumana Makadji, an accountant and former health minister, to oversee the mine for at least six months starting in June. Mining activity resumed after an agreement to reinstate payments to contractors, which had been suspended. The mine, which produced 723,000 ounces of gold in 2024, is one of Barrick's most valuable properties. The company has been unable to benefit from a 60% surge in gold prices this year due to the seizure.
Why It's Important?
The resumption of operations at the Loulo-Gounkoto mine is significant for both Barrick Mining Corp. and Mali's economy. For Barrick, the mine represents a critical asset, and its closure has prevented the company from capitalizing on rising gold prices. The situation highlights the challenges faced by foreign companies operating in politically unstable regions. For Mali, the mine's operation is crucial for economic stability, providing jobs and contributing to the national economy. The ongoing dispute over alleged tax arrears and new mining legislation underscores the complex relationship between foreign investors and host countries, which can impact future investments in the region.
What's Next?
Barrick Mining Corp. is currently engaged in arbitration proceedings, denying any unpaid taxes. The outcome of these proceedings could set a precedent for how similar disputes are handled in the future. The Malian government, having settled similar disagreements with other mining companies, may seek to resolve the conflict to ensure continued foreign investment. The situation remains fluid, with potential implications for the mining industry and international business relations in Mali.
