Mali moves to end two-year dispute over major gold mine
The Loulo-Gounkoto gold complex controlled by Barrick Gold (via Barrick Gold)
Canadian company, Barrick Gold, confirmed on 24th November that it had reached an agreement with the Malian government to end the dispute over the Loulo-Gounkoto gold mine, according to a Reuters report.
Barrick Gold and Mali have been in a dispute since 2023, after the new mining code was introduced, which gave the government a larger share in the gold mines and removed tax exemptions from mining companies.
In February this year, Barrick Gold signed its part of the agreement, but was awaiting the Malian government’s decision on the deal. The agreement reportedly detailed that the company would pay roughly $430 million to the government, and, in return, the authorities would release employees who were detained, and operations would be allowed to restart.
The current development was initiated by the interim CEO of the company, Mark Hill, who wrote a letter to the Malian government urging them to resolve the dispute, according to reports.
Mark Hill said in his statement that the company would drop its arbitration case against Mali at the World Bank, and that Mali, in return, would release Barrick Gold employees and allow operations to resume.
Reports now indicate that Barrick Gold has agreed to sign the 2023 mining code, and Mali has consented to extend its mining permit for another 10 years. Earlier in 2025, another Canadian mining company, B2Gold, had agreed to Mali’s mining code and continued its operations without disruption.
The Luolo-Gounkoto mine was very profitable for Barrick Gold with a turnover of $900 million in 2024 alone. However, the company has faced challenges, including when the military junta in Mali seized 3 metric tonnes of gold from the mine. This meant that Barrick Gold had to write off a significant proportion of its revenue.
Mali has continued its mining and exports despite its political turmoil and ongoing fuel crisis; more recently, a large lithium mining project in Bougouni was inaugurated by the president, producing about 10,000 tonnes of lithium.
Reuters, Maghrebi.org
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