Mali Court Placed Barrick Gold Complex Under State Control

SEATTLE (Scrap Monster): Prominent Canadian miner Barrick Gold Corporation announced that a court in Mali has placed its Loulo-Gounkoto gold complex under state management for a six-month period.

The presiding judge's decision states that Soumana Makadji, a former Mali health minister, will assume temporary administration of the gold mine for a period of six months. It is feared that the ruling may intensify the conflict between the corporation and the state regarding ownership and taxes.

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Previously, in November of last year, the Malian government confiscated almost three metric tons of gold that were held by its companies and prohibited the export of gold from the complex. Since January of this year, operations at the gold mining complex have been temporarily suspended as a result of such measures.

Speaking about the most recent court decision, Barrick noted that it is irrational and would be appealed. According to one of the company's attorneys, justice was neither served nor heard.

Given the current record-high global gold prices, the government requested in May that the court designate an administrator with the goal of reopening the complex. The facility is expected to bring in at least $1 billion in income over the course of the following year if it is reopened.

In February of the following year, the company's mining license in the African nation is scheduled to expire.