Mali’s gold production decreased by 23% in 2024, dropping to 51 metric tons from 66.5 tons in 2023, as reported by the mines ministry. The decline is attributed to a dispute with Barrick Gold and new mining laws that discourage investment. The total production, including artisanal mining, is expected to reach 58.7 tons.
In 2024, Mali’s industrial gold production decreased by 23%, falling from 66.5 metric tons in 2023 to 51 metric tons, as reported by the country’s mines ministry. Despite being one of Africa’s leading gold producers, Mali’s output figures specifically exclude Barrick Gold’s December production due to a dispute with the military-led government concerning a newly enacted mining law.
Recent turmoil regarding Barrick Gold has further impacted operations, as the company suspended activities at its Loulo-Gounkoto site after authorities seized gold reserves via helicopter. Additionally, four of Barrick’s employees have been detained on allegations which the company has denied, including money laundering and financing terrorism.
Mali’s revised mining code raises taxes while aiming to increase state control over mining assets, rendering new investments in the sector economically unviable. Mining executives have voiced concerns that these regulations create an unfavorable investment climate, which in turn may be influencing production declines. The government’s position is that companies, including Barrick, have not fulfilled their tax obligations.
Historically, the country’s gold production has now dipped below 60 tons for the first time in over three years, with projected figures potentially rising to 52.7 tons if Barrick fulfills its forecasts. An official speculated that the ongoing conflicts with mining firms could significantly contribute to the downturn in output, exacerbated by a general erosion of confidence in the sector.
Barrick remains Mali’s top gold producer with 19.4 tons produced in 2024, excluding December figures, trailed by B2Gold at 13.7 tons and Resolute Mining at 7.2 tons. Including artisanal mining, the overall gold production in Mali for 2024 is anticipated to reach approximately 58.7 tons, as reported by the mines ministry.
In conclusion, Mali’s gold production has experienced a significant decline due to operational disruptions stemming from disputes with Barrick Gold and the introduction of a new mining code. The decrease to 51 metric tons reflects broader issues within the sector, raising concerns about future investments. Despite these challenges, Barrick continues to be the leading producer, underscoring the complexities of Mali’s gold mining landscape.
Original Source: www.marketscreener.com
