Barrick Gold (TSX:ABX,NYSE:GOLD) has reportedly reached an agreement with the Malian government after nearly two years of issues, resolving a prolonged conflict over its Loulo-Gounkoto mining complex.
According to Reuters, the deal, which is pending formal approval by Mali’s government, includes financial compensation and regulatory commitments. It will lift gold export restrictions and allow Barrick to resume full operations.
Barrick/Mali dispute background
The dispute between Barrick and Mali began in 2023 after Mali introduced a new mining code that increased the state’s financial stake in mining projects. The revised framework required foreign mining companies to cede a greater share of revenue to the government, which relies heavily on the sector as a primary source of income.
Barrick, one of Mali’s largest mining operators, resisted certain provisions, leading to months of negotiations without resolution. Tensions escalated in late 2024, when Malian authorities detained four Barrick employees from the company’s Loulo-Gounkoto mining complex, charging them with undisclosed violations.
Barrick refuted the charges and sought diplomatic and legal avenues to secure the employees’ release.
The arrests followed similar actions against executives of Resolute Mining (ASX:RSG,LSE:RSG,OTC Pink:RMGGF), which was accused of owing US$162 million to Mali in back taxes.
In early 2025, the Malian government imposed export restrictions on Barrick’s gold production, preventing the company from shipping stockpiled gold from Loulo-Gounkoto. At the time, CEO Mark Bristow warned that a prolonged shutdown could force the company to suspend mining activities at the site entirely.
Mali then escalated the standoff by enforcing gold seizures at the mine on January 11, with government officials reportedly transferring up to 3 metric tons of gold by helicopter.
Terms of the agreement
As part of the settlement, Barrick will pay US$438 million to the Malian government.
In return, the government has agreed to release Barrick’s detained employees, lift the gold export restrictions imposed on the company and allow mining operations to resume at full capacity.
A delegation of more than 15 Malian officials and representatives from consulting firm Iventus Mining conducted a three day inspection of Loulo-Gounkoto before finalizing the deal. The Malian government reportedly gave Barrick a one week deadline to restart operations, further pressuring the company to reach an agreement.
Bristow previously stated that the closure of Loulo-Gounkoto would cause financial losses for both Barrick and Mali.
In 2024, Barrick paid US$460 million in taxes and royalties to Mali. The company has estimated that it would have contributed US$550 million in 2025 if operations had continued without disruption.
The prolonged shutdown forced Barrick to lower its annual gold output forecast to between 3.2 million and 3.5 million ounces, compared to 3.9 million ounces in 2024 and 4.1 million ounces in 2023.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.