The court-appointed administrator of Barrick Mining’s (TSX: ABX; NYSE: B) Loulo-Gounkoto complex in Mali is planning to sell some of the gold from the mine site to fund an operation restart, according to Reuters.In a report Tuesday, Reuters, citing multiple sources, said that Soumana Makadji, acting as temporary administrator of the mine operation, intends to sell one metric ton of the gold from the site’s storeroom.Funds from the planned gold sale could be worth about $107 million and are expected to be used to finance operational expenses, including salaries, fuel and unpaid dues to contractors, the report said.In addition, Reuters sources have indicated that Makadji has enlisted the state mining company’s chairman and former Loulo-Gounkoto executive Samba Toure to support the mines’ restart, and the plant has already resumed operations.Battle for controlLoulo-Gounkoto represents one of Barrick’s most significant assets, accounting for about 15% of its total output up until its suspension this January.The gold complex has become the subject of intense dispute between the Canadian miner and the Malian state for the past two and a half years following the introduction of a new mining code in 2023.The situation escalated in late 2024 as Mali’s military-led government, which held a 20% in Loulo-Gounkoto, looked to stamp its authority by blocking Barrick’s gold exports, seizing its stockpiled production and detaining company staff. These actions eventually led to its suspension earlier this year.Eyeing a restart of operations under its control, the Malian state asked the commercial court in Bamako to intervene in the dispute in May and place the gold mines under provisional administration. That request was met last month, with the court appointing Makadji as administrator for six months.In late June, a Bloomberg report came out stating that Makadji wants to restart gold mining at Loulo-Gounkoto for its potential contributions to the Malian economy.However, Reuters‘ report on Tuesday noted that challenges could surface given the scale of Loulo-Gounkoto and complexity of running the operation. “Even if production starts, we would need at least four months to get back to normal pace,” one of its sources said.Barrick responseIn response to the potential restart under Malian control, Barrick’s CEO Mark Bristow told Reuters that he will challenge the government’s moves in international courts.“We will use every legal measure at our disposal to hold the state and the individuals involved accountable for these unlawful actions to protect our people and to defend our investments,” Bristow said, adding that Mali had not acted in good faith.Bristow also expressed doubts about Mali’s ability to operate the gold mines. “We are concerned that such attempts will cause severe damage to the long-term prospects of the complex,” he said.For the quarter ended December 2024, Loulo-Gounkoto’s all-in sustaining cost was about $100 million.Barrick did not respond to MINING.COM’s request for comments at the time of writing.
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