Barrick Mining’s Loulo-Gounkoto gold mine in Mali has resumed operations after more than nine months, reported Bloomberg, citing sources familiar with the matter.
The mine, a significant asset for Barrick, was shut down in January this year due to tensions with Mali’s military-led government.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The tensions escalated until Soumana Makadji, an accountant and former health minister, was appointed by a Malian court in June this year to manage the mine for six months.
Makadji took over management of the mine amid a dispute involving export blocks and employee detentions.
Production at the site restarted late last week following an agreement to resume payments to contractors, said the news agency.
Mali’s Mines Minister, Amadou Keita, stated in June that the interim management would “restart operations, produce, pay the workers’ wages but also produce gold for the national economy”.
Barrick representatives and Makadji have not commented on the developments.
The Ministry of Mines, through a spokesperson, indicated it was not involved in the operations, which are under the interim administration.
Subcontractors affected by the shutdown include Maxam, Sandvik Group and Etasi & Co. Drilling. Maxam and Etasi did not respond to requests for comment.
The Loulo-Gounkoto complex produced 723,000oz of gold last year.
Its temporary seizure has prevented Barrick from taking advantage of a significant rally in gold prices this year.
Barrick has begun arbitration proceedings against Mali and filed appeals in Bamako challenging the detention of four employees since November, denying the allegations of money laundering and terrorism financing.
Amid ongoing tensions, Barrick reported that government agents seized a tonne of gold from the site, and the company is awaiting information on the bullion’s status.
The dispute stems from alleged back taxes and new mining legislation, with Barrick asserting that its local subsidiaries have binding agreements safeguarding them from certain legal changes.
Two weeks ago, Reuters reported that blasting operations are expected to begin at Barrick Mining’s Loulo underground gold mine in Mali.
