Mali court postpones ruling on Barrick mine

A Malian court has, for the third time, postponed a hearing on whether to place Barrick’s (TSX: ABX; NYSE: GOLD) Loulo-Gounkoto gold complex under provisional administration, Reuters reported on Monday.

The decision has been delayed until Thursday, according to Issa Aguibou Diallo, a judge at Bamako’s Tribunal de Commerce, who made the announcement during proceedings without providing a reason. Barrick didn’t immediately reply on Monday to an emailed request for comment from The Northern Miner. 

The government wants to take control of the mine that’s been embroiled in a legal dispute with the West African nation over taxes and ownership for the past 18 months. The junta enacted a new mining code in 2023 seeking larger shares of royalties and ownership. 

Barrick suspended operations at the complex in January after officials seized some three tonnes of gold and held four local employees. Since early November, authorities have blocked the company’s gold exports. Barrick has stated it will only resume operations once the Malian government lifts those restrictions.

Shares of Barrick rose 5.7% to $27.82 apiece in Toronto on Monday afternoon, giving the company a market capitalization of $48 billion (US$35 billion).

Administrative control

In May, the government requested that the Bamako Commercial Court appoint a provisional administrator to take control of the mines amid the negotiations.

A major point of contention remains Mali’s demand that Barrick transition to the country’s 2023 mining code. The government has already renegotiated agreements with other multinational miners under the new legislation, according to two sources cited by Reuters.

While Barrick has publicly rejected the junta’s charges, it hasn’t detailed them. A court document reviewed by Reuters lists alleged offences including money laundering and the financing of terrorism.

CEO Mark Bristow said in May Barrick is spending about $15 million per month on maintenance and salaries. The company, which described the shutdown as “reluctant,” has removed the Loulo-Gounkoto complex from its production forecasts until at least 2028. It earned $1.24 billion in revenue from the mine in 2022.