Canadian mining company Barrick Gold has reached an agreement with the Malian government, ending a nearly two-year dispute over mining assets in the West African nation. Sources close to the negotiations confirmed the deal on Wednesday, though Mali’s government must still formally approve it. An official announcement is expected soon, but last-minute issues could delay the process.
The conflict began in 2023 when Mali introduced a new mining code to increase the state’s share of gold mining revenues. Barrick, which operates the Loulo-Gounkoto mine—one of Mali’s largest gold mines—had been in talks with the government over the new rules. The mine’s suspension hurt both sides: Barrick cut its 2024 gold production forecast, and Mali lost significant revenue.
Under the new deal, Barrick will pay Mali 275 billion CFA francs ($438 million). In return, Mali will release detained Barrick employees, return seized gold, and allow the Loulo-Gounkoto mine to restart operations. The agreement has already boosted Barrick’s shares, which rose 3.37% on the Toronto Stock Exchange.
The Loulo-Gounkoto mine is vital to Mali’s economy. In 2023, Barrick paid 460 million to the government and was expected to contribute 550 million in 2024 before the dispute halted operations. The mine’s closure also caused a 23% drop in Mali’s industrial gold production this year.
For Barrick, restarting operations is crucial. Gold prices are at record highs, but the company’s share performance has lagged due to risks in Mali. The resolution should help Barrick improve its financial outlook.
The dispute reflects a broader trend in West Africa, where governments in Mali, Niger, and Burkina Faso are tightening control over natural resources. These countries are using legal disputes, arrests, and threats to deepen ties with Russia, aiming to gain more from their gold and uranium wealth. Mali’s military junta, which took power in 2020, has vowed to ensure the state benefits more from high gold prices.
Despite the agreement, challenges remain. Barrick had started arbitration against Mali, and it’s unclear if the company will drop the case. The deal also needs final approval from Mali’s government, and last-minute problems could still arise. Additionally, ongoing political instability in the region poses risks for Barrick and other mining companies.
Barrick CEO Mark Bristow recently said that both sides were losing due to the mine’s closure. “Every week the mine remains shut, Mali misses out on revenue, and Barrick faces production challenges,” he said. A spokesperson for Mali’s mines ministry declined to comment, and Barrick did not immediately respond to requests for details.
The agreement is a positive step for Barrick and Mali, but it highlights the challenges of operating in politically unstable regions. For Barrick, the focus is now on restarting operations and benefiting from high gold prices. For Mali, the deal offers a chance to recover lost revenue and strengthen its mining sector. However, the rise of resource nationalism in West Africa means mining companies must stay flexible to navigate changing political and economic landscapes.