Exclusive: Barrick Gold and Mali announce pact to resolve mining conflict

Four sources with knowledge of the situation told Reuters on Wednesday that Canadian miner Barrick Gold and the Malian government had reached a fresh agreement to settle a nearly two-year-old conflict over the company’s mining holdings in the West African nation.

After Barrick inked the deal, the sources told Reuters that Mali’s government now needs to formally ratify it. Official news could be released as early as Thursday. Although a deal was close, last-minute obstacles could still cause it to fall through, according to another source.

Since 2023, a conflict has existed between the Toronto-based miner and Mali on the application of the West African nation’s new mining code, which grants the Mali government a larger stake in the gold mine.

Barrick will pay the Mali government $438 million, or 275 billion CFA, as part of the new deal in exchange for the return of stolen gold, the release of detained workers, and the resumption of activities at the Loulo-Gounkoto mine.

An email question from Reuters was not immediately answered by Barrick. A mining ministry spokesman in Mali chose not to respond.

By 2:38 p.m., the company’s shares had increased 3.37% on the Toronto Stock Exchange.

Five people said Wednesday that a three-day tour of Barrick’s mining complex was concluded by a delegation of over 15 officials from Malian ministries and the private consultancy company Iventus Mining.

Barrick was given a week to resume operations by Mali late last week, according to four of the sources.

A new deal with Mali would boost Barrick’s business at a time when gold prices are at an all-time high, but investors haven’t experienced the same return on their investment in the company’s stock.

CEO Barrick stated that the mine closure was hurting both the business and Mali in an interview with Reuters earlier this month. Mali was losing out on its revenue share for each week the mine was closed, according to Mark Bristow.

According to him, Barrick had already paid $460 million to the Mali government last year and, had activities not been halted, would have contributed roughly $550 million to the country’s treasury this year.

Due to the temporary stoppage at the Mali mine, Barrick reduced its expectations for gold production this year to between 3.2 and 3.5 million ounces. Last year, Barrick produced 3.9 million ounces of gold, and in 2023, it produced 4.1 million ounces.

Legal disputes, arrests, nationalizations, and threats to strengthen their connections with Russia are all being used by military administrations in Mali, Niger, and Burkina Faso to exert more control over their resources in gold and uranium.

Following its takeover in 2020, Mali’s junta promised to conduct an investigation in order to maximize the state’s gains from the record-high price of gold.

Some Western miners, such as B2Gold in Canada, quickly came to an arrangement, opens new tab. It took longer for others, such as Resolute of Australia, whose CEO was arrested while in Mali for discussions.

Moreover, Barrick has filed for arbitration against Mali; it is uncertain if the business would withdraw its action in front of the current arrangement.

Mali brought $1.07 billion to Barrick’s revenue in 2024, a 1% rise over the year before.

In 2024, Mali saw a 23% decline in industrial gold production year over year.