Barrick Mining (TSX: ABX) in an announcement that is rather unsurprising to market followers, has stated this morning that it is opposed to Mali’s attempts to take over the day to day operations at Loulo-Gounkoto, Barrick’s mine in the country.
The comment by Barrick follows the Malian government on May 8 submitting a request to the courts that sought to impose provisional administration over the site. The mine on May 15 was provided the ability to formally respond to the filing, with submissions to the Bamako Commercial Tribunal reportedly made on May 22 by the Loulo and Gounkoto mines that oppose the provisional administration request.
A ruling on the matter is expected to be made by the President of the Tribunal on June 2.
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The Malian government is currently seeking for the day to day operations to be handled by a court appointed interim administrator. The request follows the ongoing detainment of certain Barrick employees, with those detainments now stretching to over five months, alongside the blocking of gold exports from the complex.
Barrick in turn has been forced to suspend operations on site, while the company continues to pay wages and support operations on an ongoing basis in an effort to win over the support of locals. The company has said that the actions overall are unlawful, and without precedent or lawful justification.
While guidance for Loulo-Gounkoto has not been released as a result of the ongoing dispute with the Malian government, the complex last year produced a total of 578,000 ounces of gold on an attributable basis, at all in sustaining costs of $1,304 an ounce. The mine is the second largest operation within Barrick’s entire portfolio.
Barrick Mining last traded at $26.18 on the TSX.
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