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Mali gold production plunges 23% in 2024

Mali gold production plunges 23% in 2024

Mali's gold industrial production fell 23% last year to 51 metric tonnes from 66.5 tons by 2023, according to the West African nation's Mines Ministry.

Mali, Africa's largest gold producer, is home to international mining companies such as Barrick Gold, B2Gold Corp., Resolute Mining, and Hummingbird Resources.

The ministry revealed on Friday that Barrick Gold’s December production was excluded from the number due to the dispute between the company and Mali’s military-led Government over a mining legislation introduced in 2023.

Barrick suspended its Loulo Gounkoto operations last month, after the authorities confiscated its gold reserves via helicopter. Since November, four of its employees were detained on money laundering and terrorism financing charges. The company denies these allegations.

Several mining executives said this week that Mali's mining code, with its new taxes and plans to give the state a large stake in assets, made it uneconomical to buy or invest in new mines.

Mali's Government says that mining companies, including Barrick, have not paid their fair share in taxes.

According to a ministry document, Mali’s gold production has fallen below 60 tons for over three years.

The ministry's estimates for the month of December showed that it would be 52.7 tons, if Barrick meets its December forecast.

The Ministry did not explain the decrease in production.

A mines ministry official said that the conflict between the government and mining companies may be responsible for the reduced output. An official from the mines ministry said that the sector is facing a crisis after the authorities forced foreign companies to migrate to the new code of mining and arrested executives and employees.

According to data from the Ministry, Barrick Gold is the largest gold producer in the country, with a production of 19.4 tonnes in 2024, excluding December, followed by B2Gold, at 13.7 tons, and Resolute Mining, at 7.2 tons.

The mines ministry stated that Mali's gold production is expected to be 58.7 tonnes in 2024, with an estimated 6 tons of gold produced by artisanal miners. Reporting by TiemokoDiallo. Anait Miridzhanian wrote the article. Editing by Mark Potter and Portia Crowe.

(source: Reuters)