Mali mine seizure deals $1 billion blow to world’s second-largest gold producer.

Barrick Mining Corp. shares fell after the Canadian miner booked a $1.04 billion charge tied to the seizure of its vast Loulo-Gounkoto gold complex by Mali’s military junta.

The loss reflects the “deconsolidation” of the operation following a change of control, the company said in its second-quarter earnings report Monday.

The hit to earnings was partly offset by a $745 million gain from the sale of its 50% stake in Alaska’s Donlin Gold project.

Since last year, Barrick Gold has been embroiled in a dispute with Malian authorities, who claim the company owes substantial unpaid taxes and profited from skewed contracts struck under previous governments.

Tensions spiked in December when a Malian court issued an arrest warrant for Chief Executive Officer Mark Bristow, prompting Barrick to propose a $370 million settlement.

Despite the Mali setback, Barrick shares remain up about 50% this year, fueled by a gold rally that pushed prices to a record $3,500 an ounce in April.

Source: Africabusinessinsider