Barrick Mining Books $1.04 Billion Loss Following Mali Military Seizure of Gold Mine
Shares of Barrick Mining Corporation declined after the Canadian gold producer recorded a $1.04 billion charge linked to the seizure of its extensive Loulo-Gounkoto gold complex by Mali’s military junta.
The company described the loss as a “deconsolidation” of the operation following a change of control, as detailed in its second-quarter earnings report released Monday.
This significant charge was partly offset by a $745 million gain from the sale of Barrick’s 50% stake in Alaska’s Donlin Gold project, according to Bloomberg.
Barrick has been in a prolonged dispute with Malian authorities, who accuse the company of owing substantial unpaid taxes and benefiting from contracts negotiated under previous governments.
Tensions escalated in December when a Malian court issued an arrest warrant for Barrick’s CEO Mark Bristow. The company subsequently proposed a $370 million settlement to resolve the issues.
The dispute has already led to the detention of four Barrick employees, a suspension of gold exports, and the shutdown of the Loulo-Gounkoto mine in January.
In July, Malian military helicopters made an unexpected landing at the mine site, seizing more than one metric ton of gold, the company reported.
This standoff has prevented the world’s second-largest gold producer from fully benefiting from the record rally in gold prices. Despite this, Barrick’s shares have risen about 50% this year, boosted by gold reaching a peak price of $3,500 per ounce in April.
CEO Mark Bristow emphasized that ongoing talks with Malian authorities continue, clarifying that the $1.04 billion charge is an accounting adjustment rather than a devaluation of the assets.
He remains cautiously optimistic about a resolution. “As long as we are engaged, there is a prospect of finding solutions,” Bristow said, adding that arbitration and claims for damages would only be pursued if negotiations fail.
Regarding current operations, he stated, “It’s unclear whether gold is currently being produced and sold at the site.”
