At a time when Mali is dealing with a series of political changes, including a recent shuffle in the mining portfolio, Barrick Gold鈥檚 (TSX:ABX)(NYSE:GOLD) president and chief executive Mark Bristow met with the media and said that the company will continue to invest in the future of the Loulo-Gounkoto mining complex.
鈥淪uccessful exploration is more than replacing the ounces we mine as well as identifying new growth opportunities with the potential to deliver the next generation of major discoveries in the Loulo region,鈥� Bristow said. 鈥淭he new underground mine at Gounkoto 鈥� the complex鈥檚 third 鈥� has developed its first production stopes and the Yalea South cutback is ahead of plan.鈥�
As of 2023, the complex continues to perform strongly, is on track to achieve its production guidance and is extending its solar power installation and battery storage system by 40MW. The project is already feeding 10MW into the mine鈥檚 micro-grid and it is expected that its second phase will be commissioned ahead of the current end-2024 completion date.
Barrick鈥檚 CEO pointed out that, given this state of affairs, management expects the complex to continue to be a major contributor to the Malian economy for years to come.
鈥淭he achievement of that vision will require the continued commitment to the mutually rewarding partnership which has brought us this far and delivered sustainable benefits to all stakeholders, including the country鈥檚 citizens,鈥� he noted.
According to Bristow, the 26-year-long partnership with the state of Mali that Barrick started during its previous iteration as Rangold, has built the country鈥檚 gold mining industry into a world leader, with Loulo-Gounkoto becoming one of the world鈥檚 top 10 gold producers.
鈥淭ogether with the Morila mine, the complex has contributed $9.3 billion to the Malian economy and accounted for between 5% and 10% of the country鈥檚 GDP over the past 10 years,鈥� the executive said. 鈥淟oulo-Gounkoto is one of Mali鈥檚 largest taxpayers and employers, with a workforce of some 7,000, 97% of whom are Malian nationals. Over the life of the complex, the state has received more than 70% of the economic benefits it created.鈥�
Barrick鈥檚 president also pointed out that Malian suppliers accounted for 74% of the complex鈥檚 purchases, amounting to $298 million, during the first half of this year.