Mali approved a draft decree renewing Barrick Mining’s (TSX: ABX) Loulo gold mining permit for an additional 10 years, according to a statement released Friday by the country’s military leader.
The decree advances a renewal process that follows a November resolution of a dispute between Mali and Barrick over profit-sharing and control of the Loulo-Gounkoto gold mining complex, after two years of negotiations.
Barrick Mining’s share price surged over 5% on the day, following the news.
The standoff was sparked by Mali’s 2023 mining code, which raised taxes and increased the state’s stake in projects, setting up a prolonged negotiation over the operating and economic framework for Loulo-Gounkoto.
Under the November settlement, Barrick agreed to withdraw its arbitration case filed at the World Bank’s dispute tribunal, while Mali committed to drop all charges against the Canadian miner and its affiliates.
Mali also said it would release Barrick employees and return operational control of the Loulo-Gounkoto complex to the company.
As part of the permit renewal process, Barrick completed a new feasibility study that identified economically viable reserves supporting six years of open-pit mining and 16 years of underground mining.
Loulo-Gounkoto, located in western Mali, is described as the country’s largest gold producer and Barrick’s most profitable mine, generating almost $900 million in revenue in 2024.
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