Mali's Judicial Decision Looms Over Barrick's Loulo-Gounkoto Mine

A Malian judge may order the reopening of Barrick’s Loulo-Gounkoto mine, resolving a dispute over a new mining code. This conflict includes tax disagreements and the Malian government's increased stake in the mine. Operations have been suspended, affecting gold exports and leading to negotiations for a new management.

A pivotal decision is expected on Thursday as a Malian judge will likely order the reopening of Barrick Mining's Loulo-Gounkoto gold mine, which has been closed amid a high-stakes government dispute. This move, prompted by Mali's government, could lead to significant changes in mine management and oversight.

The closure stems from tensions over a recently implemented mining code, which raised taxes and increased the Malian government's share in the mine. Operations were suspended after authorities seized three metric tons of gold, valued at $317 million, over alleged tax discrepancies, thereby halting Barrick's exports since early November.

With Mali holding a 20% interest in Loulo-Gounkoto, the government petitioned for the court's intervention to resume operations. Should the judge consent, new management could oversee the mine as Barrick and the government continue strategizing on a new memorandum of understanding. Importantly, Thursday also marks the deadline for the payment of value-added tax in Mali, with Barrick listed as a significant taxpayer.