Investing.com -- Barrick Gold Corp. (NYSE:GOLD), the world's second-largest gold producer, has temporarily halted operations at the Loulo-Gounkoto complex in Mali. The decision, announced on Tuesday, follows an intensifying disagreement with the nation's military rulers over revenue distribution from the mine, the largest in the country.
The suspension comes eight days after the company cautioned it might be compelled to cease operations if the West African nation's authorities persist in disrupting operations and limiting exports.
Barrick and the government of Mali have been at loggerheads over the distribution of income from a mine that is crucial to both the company and the country's treasury.
Since November, the state has prevented Barrick from exporting gold from the country, started seizing gold stored at the mine, and issued an arrest warrant for Chief Executive Officer Mark Bristow. In response, the mining company has initiated arbitration proceedings against Mali.
"Barrick has regrettably initiated the temporary suspension of operations while it continues to work towards a resolution," the company stated.
Loulo-Gounkoto, one of the largest gold mines worldwide, is second only to Barrick's flagship Carlin asset in Nevada in terms of output and income for the Toronto-based firm.
In 2023, the mine represented more than a third of Mali's formal gold exports, contributing payments of 278 billion CFA francs ($433 million) to the financially challenged state, as reported by the Extractive Industries Transparency Initiative.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.