Mali: Barrick Gold Reaches Deal With Mali to End Mining Dispute

20 February 2025
Daba Finance (Abidjan)

TLDR

  • Barrick Gold has agreed with Mali to resolve a nearly two-year dispute over its mining assets
  • The deal, pending formal approval, will see Barrick pay 275 billion CFA ($438 million)
  • The disagreement stemmed from Mali's 2023 mining code, which grants the government a larger stake in gold mines

Barrick Gold has signed a new agreement with Mali's government to resolve a nearly two-year dispute over its mining assets, per Reuters. The deal, pending formal approval, will see Barrick pay 275 billion CFA ($438 million) in exchange for the release of detained employees, seized gold, and the resumption of operations at its Loulo-Gounkoto mine.

The disagreement stemmed from Mali's 2023 mining code, which grants the government a larger stake in gold mines. The deal could be announced as early as Thursday, but last-minute hurdles remain. Mali had given Barrick a one-week deadline to restart operations.

Gold prices have reached record highs, yet Barrick's stock performance has lagged. A resolution in Mali could stabilize its operations, though it remains unclear if Barrick will drop its arbitration case.

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Key Takeaways

Barrick's agreement comes amid rising tensions between foreign miners and Mali's military-led government, which has sought greater control over its gold sector. The dispute halted operations at a key mine, impacting both Barrick's output and Mali's revenues. Mali's industrial gold production fell 23% in 2024, while Barrick lowered its annual output forecast due to the mine's closure. The broader trend of legal disputes and resource nationalization in Mali, Niger, and Burkina Faso signals a shift in how West African governments engage with foreign mining firms.

Read the original article on Daba Finance.

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