Barrick Gold (TSX: ABX) has reportedly reached a new agreement with the Malian government, potentially ending a nearly two-year dispute over its mining assets in the West African nation. According to sources familiar with the matter, Barrick has signed the agreement, which now awaits formal approval from Mali’s government.
The dispute, which began in 2023, centered around Mali’s new mining code that sought to increase the government’s share in gold mining operations. As part of the resolution, Barrick is set to pay 275 billion CFA francs ($438 million) to the Malian government in exchange for the release of detained employees, the return of seized gold, and the resumption of operations at the Loulo-Gounkoto mine.
While an official announcement is expected soon, sources caution that last-minute hurdles could still derail the deal. Neither Barrick nor Mali’s mines ministry have officially commented on the agreement.
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Barrick CEO Mark Bristow recently highlighted the mutual losses incurred due to the mine’s closure, noting that Mali was missing out on significant revenue. The company paid $460 million to the Mali government last year and projected a contribution of about $550 million to the nation’s treasury this year had operations continued uninterrupted.
The dispute has taken a toll on Barrick’s production, forcing the company to lower its 2025 gold output forecast to between 3.2 million and 3.5 million ounces, down from 3.9 million ounces in 2024 and 4.1 million ounces in 2023.
This development is part of a broader trend in West Africa, where military governments in Mali, Niger, and Burkina Faso are asserting greater control over their mineral resources through legal disputes, arrests, and nationalization efforts. Mali’s industrial gold production saw a 23% year-over-year decline in 2024, underscoring the impact of these disputes on the sector.
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