Barrick Gold Considers Care and Maintenance for Suspended Mali Mine

Barrick Gold is evaluating whether to place its suspended Loulo-Gounkoto mine in Mali under care and maintenance, as the site remains inoperative following the seizure of its gold stockpiles and the detention of four employees. CEO Mark Bristow stated that the company is engaged in discussions with Malian authorities to resolve the situation and secure a sustainable solution for restarting operations.

The Toronto-based miner has filed for exit arbitration with the International Centre for Settlement of Investment Disputes while continuing negotiations. A decision on whether to maintain the mine’s current status or transition to care and maintenance, which would cost approximately $10 million per month, is expected within a month.

Barrick’s latest financial results exceeded expectations, with a 15% rise in gold production and a 33% increase in copper production in Q4 2024. The company reported an adjusted profit of $0.46 per share, surpassing estimates. Additionally, Barrick announced a $1 billion share repurchase program following the successful completion of a $498 million buyback under its 2024 program.

Mali has demanded a settlement payment of $197 million and compliance with a revised mining code that increases the government’s share of mining revenues while eliminating tax exemptions. Barrick maintains that it retains ownership of the gold seized by Malian authorities, valued at approximately $245 million. The company has stated that operations will resume once gold shipments are permitted.

Bristow emphasized Barrick’s commitment to resolving the dispute, noting the company’s track record of successfully managing similar challenges in other jurisdictions. He also reiterated that Mali’s approach to increasing royalties could ultimately shorten the mine’s lifespan.