Barrick Gold has signed a new agreement with Mali, potentially ending a two-year dispute. The agreement involves a payment of $438 million to the government in exchange for the release of detained workers, seized gold, and the resumption of mining operations at the Loulo-Gounkoto site. A recent inspection by Malian officials underscores the urgency of the situation as Barrick forecasts lower gold output due to operational halts.
Barrick Gold has finalized a new agreement with the government of Mali, potentially resolving a two-year dispute, pending formal governmental approval. According to multiple sources from Reuters, Barrick will remit a total of 275 billion CFA, equivalent to $438 million, to the Malian administration. In return, the company expects the release of its detained employees, the return of seized gold, and the resumption of operations at the Loulo-Gounkoto mine.
A recent inspection of Barrick’s mining complex was conducted by over 15 representatives from various Malian ministries and the consulting firm Iventus Mining. This three-day inspection concluded on Wednesday, setting the groundwork for the potential agreement. Notably, Mali has imposed a deadline on Barrick to commence operations once again within a week, emphasizing the urgency of the situation.
The reaffirmation of this agreement is crucial for Barrick, especially amid surging gold prices which are currently at record highs. However, investors have not witnessed a corresponding increase in share value. Barrick’s CEO, Mark Bristow, earlier noted that the company contributed $460 million to the Malian government last year and projected a contribution of $550 million this year, had operations remained uninterrupted.
Due to the ongoing operational suspension at the Mali mine, Barrick has revised its gold output forecast for the year to between 3.2 million and 3.5 million ounces, a decrease from last year’s output of 3.9 million ounces and the anticipated 4.1 million ounces for 2023. This adjustment reflects the substantial impact of halted operations on overall production capabilities.
In summary, Barrick Gold’s new agreement with Mali signifies a crucial step towards resolving a longstanding dispute while aiming to restore operational stability at the Loulo-Gounkoto mine. The financial implications are significant, with a notable payment to the Malian government and revised output forecasts reflecting current challenges. Moving forward, the successful resumption of operations will be critical for both Barrick’s operations and its investor confidence amid fluctuating gold prices.
Original Source: www.miningmx.com
