Global mining heavyweight Barrick Gold (NYSE : GOLD) has suspended operations at its Loulo-Gounkoto mine in Mali after the military-run government took a reported US$245 million in bullion from the project, as a spat over export restrictions continues.
Barrick has followed through with its threat to suspend operations at its massive 700,000oz Loulo-Gounkoto operation after the military-led government moved gold stocks to a custodial bank over the weekend.
The suspension affects the livelihood of a whopping 8,000 employees in one of Africa’s poorest and most volatile countries, which has seen conflict ensue to this day, ever since Tuareg rebels started abducting and killing soldiers in the country's northeast in 2007.
In a statement yesterday, the world’s second-largest gold producer described the decision to suspend mining as “regrettable” but necessary, emphasising its commitment to resolving the dispute.
“Barrick remains committed to constructive engagement with the Malian government and all stakeholders to find an amicable solution that ensures the long-term sustainability of the Loulo-Gounkoto mining complex and its vital contribution to Mali’s economy and communities,” the company said.
In retaliation, Mali’s junta went and airlifted gold stocks from Luolo-Gounkoto by helicopter to the state-owned Banque Malienne de Solidarité (BMS) in the country’s capital Bamako.
While the bullion hunter miner didn’t mention the amount of precious metal that had been seized, Reuters has reported its value to be around the US$245 million mark.