Barrick Gold and the Malian government have settled a two-year dispute over the Loulo-Gounkoto mining complex, with Barrick agreeing to pay US$438 million. The settlement lifts gold export restrictions and allows the company to resume operations. The conflict stemmed from a new mining code requiring foreign companies to cede more revenue to the state.
Barrick Gold has reached a settlement with the Malian government to resolve a two-year dispute related to its Loulo-Gounkoto mining complex. The deal, which is subject to formal government approval, includes a payment of US$438 million to Mali and necessitates regulatory commitments. Once finalized, this agreement will lift restrictions on gold exports, allowing Barrick to resume normal operations at the site.
The conflict arose after Mali introduced a new mining code in 2023, increasing the state’s share of mining revenues. Barrick, a significant mining operator in the region, resisted the new provisions which prompted lengthy negotiations. Tensions escalated in late 2024 when Malian authorities detained Barrick employees at the mining complex for alleged violations, which the company denied.
Subsequent to these incidents, the Malian government imposed restrictions on Barrick’s gold exports, hampering their ability to ship gold from stockpiles. CEO Mark Bristow issued warnings about potential operational suspensions. In January 2025, Mali escalated the dispute further by seizing gold from the Loulo-Gounkoto mine.
Under the new agreement, the Malian government will release the detained employees and remove the export restrictions, enabling Barrick to operate fully. A recent inspection by Malian officials and Iventus Mining facilitated the settlement process. Barrick was given a one-week deadline to commence operations, underscoring the urgency of the resolution.
This prolonged dispute has significantly impacted Barrick’s gold production forecasts, which were revised due to operational interruptions. The company previously paid considerable taxes and royalties to Mali, totaling US$460 million in 2024. If operations had proceeded normally in 2025, Barrick estimated a contribution of US$550 million.
The settlement between Barrick Gold and the Malian government marks a significant resolution to a lengthy and complex dispute that has impacted gold production and financial contributions to the Malian economy. With the agreement enhancing operational clarity, it reflects the ongoing negotiations and regulatory challenges facing foreign mining firms in Mali, ultimately benefiting both parties amid shifting regulatory landscapes. The agreement will reinstate Barrick’s operations at full capacity while securing the Malian government’s anticipated revenue from the mining sector, vital for the nation’s economy.
Original Source: investingnews.com
