Blasting operations are due to begin at Barrick Mining’s Loulo underground gold mine in Mali this week, following a four-month period during which a court-appointed provisional administration has overseen the site, reported Reuters, citing two sources.
Mali’s provisional administration is set to restart mining operations at Barrick’s Loulo underground gold mine on 15 October, four months after assuming control.
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The provisional administration, appointed by a Bamako court in June, initially limited activities at the mine to transporting existing ore stocks and processing them.
Its plans to resume mining in September were delayed due to payment negotiations with subcontractors, some of which have been unpaid since operations halted in January.
The suspension followed a dispute between Barrick Mining and Mali’s military-led government over a new mining code.
This new code proposed increased taxes and greater state ownership in gold mines including the Loulo-Gounkoto complex, where Barrick holds an 80% stake.
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By GlobalDataLed by former Malian Health Minister Soumana Makadji, the provincial administration has overseen the production of around 1.07 tonnes (t) of gold from pre-suspension ore stocks.
Blasting operations involving explosives to access gold deposits are expected to restart once outstanding payments to subcontractors Sandvik and Maxam are resolved.
However, the open-pit mine activities are not expected to resume immediately, pending payment to its main subcontractor, reported the media outlet.
Negotiations between Barrick and the Malian government have been ongoing throughout the year, with a recent round occurring in August.
The discussions are compounded by international arbitration proceedings at the World Bank’s arbitration court, with a ruling anticipated this month.
The operational halt has significantly impacted Mali’s industrial gold production, which decreased by 32% year-on-year to 26.2t by the end of August, according to a document from the mines ministry.
Last month, Mali approved seven new mining deals under its revised mining code, aiming to expand state participation and revenue from the sector.
