Wedoany.com Report-Oct. 14, Barrick Mining's Loulo underground gold mine in Mali is scheduled to restart full mining activities on October 15, following a four-month oversight period by a court-appointed provisional administration. This development, reported by Reuters citing two sources, comes after operations were limited to processing existing ore stocks since the administration assumed control in June.

Activities at the open-pit mine are not expected to resume immediately.

The provisional administration, established by a Bamako court, initially focused on transporting and processing pre-existing ore to maintain some productivity. Plans to resume active mining in September were postponed due to ongoing discussions with subcontractors over unpaid invoices dating back to the January suspension. Blasting operations, essential for accessing new gold deposits, will commence once payments to key partners Sandvik and Maxam are finalized. However, activities at the associated open-pit mine are not expected to restart immediately, pending resolution of outstanding payments to its primary subcontractor.

The suspension of operations at the Loulo-Gounkoto complex stemmed from discussions between Barrick Mining and Malian authorities regarding implementation of a revised mining code. This code includes provisions for higher taxes and increased state participation in gold mining projects, where Barrick maintains an 80 percent stake. Negotiations between the parties have continued throughout the year, including a session in August, alongside international arbitration proceedings at the World Bank's arbitration court, with a decision anticipated this month.

Under the leadership of former Malian Health Minister Soumana Makadji, the provisional administration has managed the production of approximately 1.07 tonnes of gold from ore stocks accumulated before the halt. This output helped mitigate some impacts, but the overall suspension has contributed to a 32 percent year-on-year decline in Mali's industrial gold production, reaching 26.2 tonnes by the end of August, according to a document from the mines ministry.

The Loulo-Gounkoto complex remains a vital asset in Mali's mining sector, supporting both domestic revenue and export activities. The resumption of underground mining at Loulo is expected to gradually restore production levels, aiding recovery in the country's gold output. This step aligns with broader efforts to stabilize operations while addressing contractual and financial obligations to subcontractors.

Mali's mining landscape continues to evolve, as evidenced by the approval of seven new mining agreements last month under the updated code. These deals aim to enhance state involvement and optimize revenue generation from natural resources. For Barrick Mining, the restart represents a critical advancement in resolving operational challenges at one of its key sites, potentially paving the way for sustained productivity.

As blasting resumes, the focus will shift to efficient resource extraction and compliance with safety standards. The provisional administration's role in bridging payment gaps underscores the importance of collaborative approaches in maintaining mining continuity. This development is poised to bolster Mali's position as a significant gold producer, contributing to economic stability through renewed activities at the Loulo mine.