Exclusive: Mali plans to sell gold reserves at Barrick complex to fund operations.
Former health minister Soumana Makadji, appointed as temporary administrator last month, enlisted the state mining company’s chairman and former Loulo-Gounkoto executive Samba Toure to help with operations, two different sources said.
The site accounted for 15% of gold output from Barrick, the world’s third-largest gold miner, before the suspension, which has affected national gold output and reflects a broader conflict between Mali and international miners.
Mark Bristow, Barrick’s CEO, told Reuters the company had received only informal information about the restart and gold shipment.
Makadji and Mali’s mines ministry did not immediately respond to queries by Reuters. Toure could not be reached.
Barrick suspended operations after Mali blocked exports, executives and seized bullion. It also launched international arbitration to resolve the dispute.
The move to restart the complex comes amid a two-year standoff between Barrick and Mali’s military-led government over alleged tax disputes and the company’s refusal to adopt a new mining code aimed at boosting state revenue from soaring gold prices.
Indeed, investors who have poured billions into West Africa are now compelled to adopt new rules as the military governments of Mali, Niger and Burkina Faso seek a bigger share of mining revenue.
Gold prices have jumped 25% this year to date, and peaked at $3,500 per ounce in April. elling the ton of gold – which has sat in Loulo-Gounkoto’s gold room since operations were suspended, and is separate from three tons seized in January – would be one of Makadji’s first key actions after formally taking charge of the largest gold mining operation in Mali and the third-largest in Africa.
Restarting without Barrick’s cooperation may set a precedent for state intervention in the West African mining industry.
Funds from the planned gold sale, worth about $107 million, are expected to be used to finance operational expenses, including salaries, fuel and unpaid dues to contractors.
Source: Reuters