Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX)’s CEO said during a media briefing that its decades-long partnership with the government of Mali has built the country’s gold mining industry into a world leader.
Mark Bristow said that the Loulo-Gounkoto complex was the most significant business in terms of enterprise value in West Africa. Over the past decade, the Loulo-Gounkoto mining complex, in conjunction with the Morila mine, has made a significant contribution of $9.3 billion to the economy of Mali. This amounts to roughly 5 per cent to 10 per cent of the country’s GDP.
As one of Mali’s major taxpayers and employers, the complex has played a vital role, employing approximately 7,000 individuals, with 97 per cent of them being Malian nationals. Throughout the existence of the mining complex, the state has received over 70 per cent of the generated economic benefits.
Malian suppliers made up 74 percent of the complex’s purchases, totalling $298 million, in the first half of this year.
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Regarding the operations of Loulo-Gounkoto, Bristow affirmed that the complex’s performance remained robust, and it was on track to meet its production targets for this year. The complex continues to prioritize the safety of its workers, as evidenced by another quarter with no lost-time injuries.
As part of Barrick’s transition to renewable energy, the complex is expanding its solar power installation and battery storage system by 40MW. Currently, 10MW is already being supplied to the mine’s micro-grid and the second phase of the project is expected to be commissioned well before the originally planned completion date of end-2024.
“We are continuing to invest in the future of Loulo-Gounkoto. Successful 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,” Bristow said.
He added that the new underground mine at Gounkoto — the complex’s third — has developed its first production stopes and the Yalea South cutback is ahead of plan.
“We foresee that the complex will be a major contributor to the Malian economy for years to come. The 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’s citizens,” he said.
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US Government raises alarms for responsible gold mining practices in Sub-Saharan Africa
Last week, several U.S. Departments, including State, Treasury, Commerce, Homeland Security, Labor and USAID issued a joint advisory expressing concerns over illicit activities in the gold trade in sub-Saharan Africa.
They emphasize the importance of the gold sector to the economies and communities of many countries in the region. The advisory urges businesses in the gold industry to enhance their vigilance and strengthen checks to prevent inadvertent support for illegal activities.
It also highlights the potential for responsible investment in gold mining, trading, refining and selling, while emphasizing the significant role of small-scale gold mining, which contributes about 20 per cent of the world’s gold production. Despite challenges, the advisory sees potential for improving the integration of small-scale mining into the formal gold trade.
