BAMAKO, Dec 19 – Canada’s Barrick Mining has officially resumed operational control of its gold mining complex in Mali, according to an internal company memo.
The memo, sent by Sebastiaan Bock, Barrick’s Director of Operations for Africa and the Middle East, said the company will restart production gradually and prioritise mandatory training for employees and contractors as operations resume.
The return of control follows an agreement reached last month between Barrick and the Malian government, ending a two year dispute over the implementation of a new mining code introduced by the country’s military led authorities.
The disagreement had forced Barrick to suspend operations at the mine in January, after which a Malian court appointed a provisional administrator to take over the site in June. As part of the settlement, Barrick agreed to pay about $430 million, according to a source familiar with the deal.
In a related development last week, a Malian judge ordered the return of 3 metric tons of gold previously seized from Barrick by the military government. The gold, valued at roughly $400 million, was confiscated by military helicopter in January following a court order and has since been held at BMS bank in the capital, Bamako, according to two people familiar with the matter.
Barrick, which counts activist investor Elliott Capital among its shareholders, has recently announced plans to sharpen its focus on North American operations. The company is also preparing a potential initial public offering of its North American business under interim Chief Executive Officer Mark Hill.
Barrick shares were trading about 1% higher on the Toronto Stock Exchange on Thursday following news of the operational restart.
