Barrick aims to reopen Mali mine once it can ship gold, CEO says

Rewrites throughout to add CEO quotes, background

By Divya Rajagopal and Felix Njini

TORONTO, Feb 12 (Reuters) - Barrick Gold ABX.TO will resume operations at its shuttered Loulo-Gounkoto mine in Mali once authorities in the country allow it to resume gold shipments, CEO Mark Bristow told Reuters on Wednesday.

The Toronto-based miner and Mali have been locked in a dispute since 2023 over the implementation of the West African country's new mining code. In January, Barrick suspended mining operations after the military-led government blocked shipments from the Loulo-Gounkoto complex and then seized three metric tons of gold.

Barrick has been assured by Mali that the gold worth about $245 million seized by authorities still belongs to the company, Bristow said at the company's Toronto headquarters.

Shares in the world's No. 2 gold miner rose more than 7% in New York trading on Wednesday afternoon after the company reported a surge in 2024 profit, buoyed by a rally in bullion prices. Barrick also announced a new $1 billion share buyback.

Tensions between Mali and Barrick, the country's largest investor, escalated last year when authorities detained four of the company's employees and issued an arrest warrant for Bristow.

"We will start the operations as soon as we get approval to ship the gold and we need to ship the gold to pay anything to the government," Bristow said.

He said that Barrick paid $460 million to the Mali government last year and would have contributed about $550 million to the nation's treasury this year if operations had not been suspended.

Barrick lowered its gold output forecast this year to between 3.2 million ounces and 3.5 million ounces due to the temporary halt at the Mali mine. Barrick's gold output was 3.9 million ounces last year and 4.1 million ounces in 2023

Mali's aggressive push for higher taxes and a bigger state shareholding in mining projects has soured ties with its mining investors. Gold output plunged 23% to 51 metric tons last year, the nation's mines ministry said.

Both Mali and Barrick are losing out from the closure of Loulo-Gounkoto, Bristow said.

"So if you calculate that to per week ... and every week we don't do this it hurts everyone," he said.

The CEO also proposed that an independent expert be hired to "review the facts (in the dispute) and on that basis we can find a way forward", adding that Mali's new law adds costs that could shorten the life of Loulo-Gounkoto mine.

"Ultimately, it's the people of Mali that lose," Bristow said. "The investors will move on to another country, another project and other opportunities."

Barrick said it is not sure whether it can keep the mine under temporary closure.

"We can go for a couple of weeks and a month and seek closure with Malian government," Bristow said. "After that we have to take a decision."