Barrick Gold Corporation has announced that it will suspend its operations in Mali if the government does not lift restrictions on gold shipments within the next week. This ultimatum comes as the mining giant faces what sources describe as a potential confiscation order related to its gold stock.
Key Highlights:
Operational Threat:
Barrick’s Loulo-Gounkoto mining complex, which contributes approximately 14% of the company’s estimated gold output for 2025, is at the center of the dispute.
The company stated that if the gold shipment issues are not resolved soon, it will have no choice but to temporarily halt operations.
Mali’s Regulatory Environment:
The Malian government has imposed restrictions on gold shipments and issued an interim order against existing gold stocks at Loulo-Gounkoto, effectively preventing exports.
Industry insiders believe this could lead to the confiscation of around 4 metric tons of gold currently held at the site.
Regional Instability:
The situation in Mali is part of a broader trend in West Africa, where military governments in Mali, Burkina Faso, and Niger are renegotiating mining contracts to secure a larger share of revenues.
These countries are shifting alliances from traditional partners like France and the U.S. toward Russia.
Impact on Barrick:
Barrick’s shares fell 1.9% on the Toronto Stock Exchange following the announcement.
Analysts estimate that a production suspension could reduce Barrick’s earnings before interest, taxes, and amortization by 11% in 2025.
Company’s Position:
Barrick has been in a contractual dispute with the Malian government over new mining rules implemented in 2023, which the company argues should not apply retroactively to existing operations.
The government has not yet commented on the situation, and Barrick has not responded regarding the potential confiscation of its gold stocks.