Barrick to boost Mali exploration as regulations shift

Barrick Gold (TSX: ABX; NYSE: GOLD) is actively working to expand its exploration activities in Mali to ensure the long-term sustainability of its Loulo-Gounkoto operation, CEO Mark Bristow said yesterday while visiting the operation.

The gold giant has started discussions with Mali’s National Directorate of Geology and Mines as it seeks to grow its footprint in the country. Since 2021, Mali has been run by a military junta that has been tightening its grip on the lucrative mining sector.

Media reports suggested earlier this year the regime was planning to seize Barrick’s massive Loulo-Gounkoto complex, one of the world’s largest gold-producing mines. 

Bristow noted that the current economic and political climate in Mali has prompted many exploration companies to reduce or halt their operations in the country, but didn’t comment on media speculation. 

What Barrick’s boss did say is that the exodus of exploration companies could curb the country’s gold production in the future.

Mali recently conducted a review of its mining regulations, resulting in the adoption of a new Mining Code last week. The improved set of rules is expected to provide a stable framework essential for mining investment.

This is the third time Bristow has visited Mali since late January, emphasizing the contributions made by Barrick’s mines to the nation’s economy. These include nearly US$10 billion in taxes, royalties, salaries, and payments to local suppliers, constituting 5% to 10% of the country’s GDP, the company said.

The gold giant said that, in the past year alone, it has contributed more than US$1 billion to the Malian economy.

“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,” Bristow said in the 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,” Bristow added.

The Loulo-Gounkoto complex currently holds proven and probable gold reserves estimated at 6.7 million oz., with measured and indicated gold resources totalling 9.1 million ounces. It produced 683,000 oz. of gold in 2023 and is on track to meet its production guidance for the current quarter and the year.