(Bloomberg) — Barrick Gold Corp. said Mali’s military junta has blocked shipments from the country’s largest gold mine and the company will need to halt operations at the site if they remain suspended.
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Shares of the Canadian gold producer fell as much as 2.6% to $16.34 as of 12 p.m. in New York.
For months Barrick has been locked in a dispute with the government over how to divide the economic benefits from the Loulo-Gounkoto complex which produced almost 700,000 ounces of gold last year. The junta has detained several company employees and earlier this month it put out an arrest warrant for Chief Executive Officer Mark Bristow.
“Local operating conditions have deteriorated significantly with employees imprisoned without cause and gold shipments blocked,” Barrick said in a statement Monday. “If shipments remain suspended, Barrick will be compelled to suspend operations, further impacting the viability of this critical economic driver for Mali.”
Recent developments at the site will further erode investor confidence in Mali’s mining sector and will deter future investment, Bristow said in the statement. The company remains open to constructive engagement with the government to resolve the dispute, he said.
“A December shutdown at this major mine could also put 2024 gold production guidance at risk,” National Bank of Canada analyst Mike Parkin said in a note. Parkin now estimates Barrick will produce 3.9 million ounces across its portfolio this year, the bottom end of the company’s guidance range of 3.9 million to 4.3 million ounces.
–With assistance from Katarina Höije.
(Updates shares and analyst note in last paragraph.)
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