Barrick Gold has signed a new agreement with the Malian Government, bringing an end to a dispute that has lingered for nearly two years over its mining operations in the West African country.
The deal, which still requires formal approval from Mali’s Government, is expected to be announced shortly, possibly as early as Thursday (today). While sources indicate that the agreement is nearly finalized, last-minute obstacles could still derail the resolution.
The conflict between Barrick and Mali escalated in 2023 due to the implementation of a new mining Code, which saw Mali increase its stake in the country’s gold resources.
Under the terms of the new agreement, Barrick will pay the Mali government a substantial sum of 275 billion CFA (approximately $438 million) in exchange for the release of detained employees, the return of seized gold, and the resumption of operations at the Loulo-Gounkoto mine. This payment aims to resolve the ongoing dispute over the mining assets and re-establish Barrick’s operations, which had been disrupted by the government’s actions. The closure of the mine had significant financial consequences, with Barrick CEO Mark Bristow previously stating that both the company and Mali were suffering losses as a result of the suspension.
As gold prices continue to hit record highs, the resumption of Barrick’s operations in Mali is expected to provide a boost to both the company and the country’s economy. However, despite the uptick in gold prices, Barrick’s share performance has not yet reflected similar growth. The agreement also underscores the growing trend in several West African nations, such as Mali, Niger, and Burkina Faso, to assert greater control over their natural resources, with legal disputes, nationalizations, and strategic alliances with countries like Russia becoming more common.