Third Delay In Mali Court Battle Over Barrick's Gold Complex

A Malian court has again postponed a hearing on whether to place Barrick Mining's (NYSE:B) Loulo-Gounkoto complex under provisional administration. The decision was the third adjournment in the long dispute between the Canadian mining leader and the military-led government of Mali.

According to Reuters, the hearing is now set for Thursday, June 5, per Judge Issa Aguibou Diallo of Bamako's Tribunal de Commerce, who announced the delay during Monday's session without citing a reason.

Following the announcement, Barrick's shares jumped 6.05% on Monday to close the day trading at $20.30. The stock is up 31.44% year-to-date, in line with a gold rally, as the yellow metal surged to nearly $3,400 per ounce.

Barrick Mining, which recently changed its name from Barrick Gold to reflect the company's diversification efforts, has been in conflict with the Malian government over changes to its mining code.

The ruling military junta sought to increase state ownership stakes and tax burdens for foreign miners, going so far as to detain a foreign C-level executive.

The situation escalated, and the Loulo-Gounkoto complex, once one of Mali's most productive gold assets, has been idle since January after the government seized three metric tons of gold and blocked further exports. Barrick has maintained it cannot resume operations until these restrictions are lifted.

As Africa's third-largest gold producer, Mali's economy heavily relies on mining revenues. The military junta has led the country since 2021, but its prioritization of tighter control over its natural resources has had an adverse effect. Gold production experienced a sharp decline, falling 23% to 51 metric tons in 2024, compared to 66.5 tons in 2023.

Although it has come close to a resolution multiple times, the government has failed to find common ground with Barrick, the largest foreign operator in the region. While the company has rejected the accusations, a court document reviewed by Reuters lists charges, including money laundering and financing of terrorism.

For both Mali and Barrick, the Loulo-Gounkoto complex is a critical asset. The site accounted for a significant portion of Mali's gold output and contributed to Barrick's production profile. The suspension costs the miner an estimated $1.24 billion annually in lost revenue, and it continues to spend approximately $15 million per month on-site maintenance and salaries to preserve operational readiness.

With no breakthrough in sight, Barrick has excluded Loulo-Gounkoto from its production forecasts through at least 2028.

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