Barrick Gold Navigates New Mining Code, Political Changes To Secure Mali Operations

Leading gold miner Barrick Gold GOLD ) is ramping up its exploration efforts in Mali, focusing on sustaining its Loulo-Gounkoto mining complex. CEO Mark Bristow re-iterated the company’s positive outlook for this vital project after visiting this African country for the third time this year.

“We continue to work constructively towards a global resolution of our differences and finding common ground on the key issue of sharing the economic benefits of our operations,” he said in a statement.

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The Loulo-Gounkoto complex, a major asset in Barrick’s operations, produced 683,000 ounces of gold in 2023 and holds proven and probable reserves estimated at 6.7 million ounces. Additionally, its measured and indicated gold resources total 9.1 million ounces. These numbers show the mine’s importance to both Barrick and the Malian economy, contributing nearly $10 billion over the past 29 years.

However, Mali’s political landscape has been turbulent since the 2021 coup, which brought a military junta to power. Per The Africa Report's investigation, the junta has aligned with Russia’s Wagner Group, raising concerns about the country’s stability. Despite these challenges, Bristow remains committed to Barrick’s operations, noting the company’s role in the country's economy.

The Malian interim president, Assimi Goita, recently signed a revised mining code, allowing the government to increase its ownership stakes in mining projects from 20% to 35%. This move could more than double the sector's contribution to Mali’s gross domestic product, potentially reaching around 20%. However, Barrick asserts that its operations are governed by the three-decade-old mining code established in 1991, which has facilitated significant economic contributions.

The new mining code aims to provide a more stable framework for mining investment, but it also introduces uncertainties for companies operating under previous agreements. Bristow’s visits to Mali point to a proactive approach as the miner ensures the continuity and growth of its operations.

On a positive note, the company has a track record of success in tough jurisdictions, as Bristow pointed out in a statement.

"It’s worth noting that Barrick developed a highly successful benefit-sharing partnership for our Tanzanian operations, which has since also been used as a model for the reopened Porgera mine in Papua New Guinea,” he added.

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