Mali’s court-appointed administrator of Barrick Mining’s Loulo-Gounkoto complex plans to sell one metric ton of gold from the site’s storeroom, worth approximately $107 million, to fund operational expenses.
The gold sale is expected to cover costs including salaries, fuel, and unpaid dues to contractors. This move comes after the complex resumed operations on Monday for the first time since January, following a nearly six-month suspension.
The decision to restart operations and sell gold has sparked controversy, with Barrick’s CEO Mark Bristow vowing to challenge the government’s moves in international courts. Bristow stated that any plans to restart operations and sell gold would be “illegitimate”.
The 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 has affected national gold output.
The Loulo-Gounkoto complex, which accounted for 15% of Barrick’s gold output before the suspension, is a significant contributor to Mali’s economy.
Funds from the gold sale will likely be used to finance operational expenses, including salaries and fuel. Restarting without Barrick’s cooperation may set a precedent for state intervention in the West African mining industry.
The administrator, Soumana Makadji, has enlisted the state mining company’s chairman and former Loulo-Gounkoto executive Samba Toure to help with operations.
The planned gold sale 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.
Barrick has restricted intranet and email access in Mali since losing control of the complex and has only paid Bamako-based staff for June, while those on site remain unpaid.