Mining giant Barrick Gold has reached an agreement with the Malian government, resolving a nearly two-year dispute over mining operations in the West African nation. According to Reuters, the deal includes a $438 million payment from Barrick to Mali in exchange for the release of detained employees, the return of seized gold, and the restart of operations at the Loulo-Gounkoto mine.
Deal nears official approval
Reuters sources confirmed that while Barrick has signed the agreement, formal approval from Mali’s government is still pending. An official announcement could come as early as Thursday, but last-minute complications could still delay or derail the settlement.
The dispute dates back to 2023, when Mali introduced a new mining code granting the state a greater share in gold mining revenues. The stricter regulations led to tensions between the government and several foreign mining companies, including Barrick Gold.
Settlement terms and mining resumption
The agreement marks a breakthrough in negotiations, allowing Barrick to restart operations at one of its key gold mining sites. Reuters reported that a delegation of over 15 officials from Mali’s ministries and Iventus Mining, a private consulting firm, conducted a three-day inspection of the Loulo-Gounkoto mining complex before the settlement was finalised.
Malian authorities had reportedly given Barrick a one-week deadline last week to resume production, according to four Reuters sources. With gold prices hitting record highs, the settlement could revive Barrick’s revenue streams while also restoring Mali’s share of earnings from the mine.
Barrick’s financial and production impact
Barrick CEO Mark Bristow recently told Reuters that the company and the Malian government were both losing money due to the mining shutdown. In 2023, Barrick paid $460 million in taxes and royalties to Mali. Had operations continued in 2024, the company expected to contribute approximately $550 million to Mali’s treasury.
The prolonged closure also impacted Barrick’s gold production forecasts. The miner lowered its 2024 output projection to 3.2 million–3.5 million ounces, a significant drop from 3.9 million ounces in 2023 and 4.1 million ounces in 2022. Mali alone contributed $1.07 billion in revenues for Barrick in 2024, reflecting a 1 percent increase from the previous year despite the disruption.
Mali’s tougher stance on mining and foreign investors
Since taking power in 2020, Mali’s military-led government has sought to tighten control over its natural resources. With gold prices soaring, the state has pushed for greater revenue shares, stricter mining regulations, and renegotiated agreements with foreign companies.
Western mining firms operating in Mali, Niger, and Burkina Faso have faced increased scrutiny, arrests of executives, and threats of nationalisation. Some companies, such as Canada’s B2Gold, quickly reached agreements with the Malian government, while others, like Australia’s Resolute Mining, experienced delays, with its CEO briefly detained during negotiations.
Future uncertainty and arbitration case
Barrick had previously launched arbitration proceedings against Mali over the dispute. It remains unclear whether the company will now drop its legal case following the latest agreement.
Meanwhile, Mali’s industrial gold production has dropped 23 percent year-over-year in 2024, underscoring the wider impact of regulatory uncertainty on the nation’s mining sector. However, the resolution of Barrick’s dispute could signal a turning point in Mali’s approach to foreign mining partnerships.
With the formal approval of the deal imminent, investors and industry analysts will be watching closely to see whether the settlement restores stability to Mali’s gold sector.
