Mali: Barrick Gold signs an agreement with the government to end a two-year mining dispute

Canadian mining group Barrick Gold has reached a new agreement with the Malian government to end a nearly two-year dispute over its assets in the West African country, four sources close to the matter told Reuters on Wednesday. The agreement, which marks a significant step forward, still awaits formal approval from the Malian authorities, with an official announcement possible as early as Thursday.

The dispute, which has pitted the Toronto-based giant against the Malian junta since 2023, concerns the application of a new mining code giving the state a larger share of revenues from the Loulo-Gounkoto gold mine. Under the terms of the agreement, Barrick has agreed to pay CFAF 275 billion ($438 million) to Mali in exchange for the release of its detained employees, the return of seized gold and the resumption of operations at this strategic site. However, a source warns that last-minute obstacles could still compromise the finalisation.

Tensions had reached a peak in recent months with the temporary suspension of operations at Loulo-Gounkoto in January, after the Malian government blocked exports and seized around 3 tonnes of gold. A delegation of more than 15 Malian representatives, accompanied by Iventus Mining, completed a three-day inspection of the complex on Wednesday, while Bamako gave Barrick a one-week ultimatum last Friday to restart operations.

"Both parties lost out in this closure", Barrick CEO Mark Bristow told Reuters in early February, pointing out that Mali was depriving his treasury of weekly income. In 2024, the mine had generated $1.07 billion for the company, 1% more than in 2023, while Barrick had paid $460 million to the Malian state last year. Without the stoppage, this figure could have risen to $550 million this year.

The suspension has led Barrick to lower its production guidance for 2025 to between 3.2 and 3.5 million ounces, from 3.9 million in 2024 and 4.1 million in 2023. With gold prices at record highs, the deal could provide a timely boost to trading, although investors have yet to see the full benefit for the company's shares. Barrick shares were still up 3.37% on the Toronto Stock Exchange at 2.38pm on Wednesday.

Mali, ruled by a junta since 2020, is part of a regional dynamic in which the military governments of the Sahel - Mali, Niger and Burkina Faso - are seeking to maximise their mining resources, often at the cost of legal disputes or pressure on foreign operators. While some, such as B2Gold, quickly found common ground, others, such as Australia's Resolute, had to give in after arrests. Barrick, which had initiated international arbitration, did not say whether this procedure would be abandoned.

Faced with a 23% drop in its industrial gold production in 2024, Mali is counting on this agreement to stabilise a key sector. For Barrick, it means securing Loulo-Gounkoto, a key asset accounting for around 14% of its global production, while renewing ties with a key partner.