Barrick Gold Resolves Dispute with Mali Government, Signs New Agreement
Barrick Gold and Mali Reach Landmark Agreement
Canadian mining giant Barrick Gold has signed a new agreement with the Malian government, ending a nearly two-year dispute over mining assets in the West African nation. According to sources familiar with the matter, the deal was finalized on Wednesday, February 19, 2025, and awaits formal approval from Mali’s government. An official announcement is expected as early as Thursday, February 20, 2025.
The dispute, which began in 2023, centered on Mali’s new mining code, which grants the government a larger share of mining revenues. The agreement marks a significant step toward resolving tensions and restarting operations at Barrick’s Loulo-Gounkoto mine, one of the country’s largest gold-producing sites.
Key Terms of the Agreement
As part of the deal, Barrick Gold will pay the Malian government 275 billion CFA francs ($438 million). In return, Mali will release detained Barrick employees, return seized gold, and allow the resumption of operations at the Loulo-Gounkoto mine.
The agreement comes after a three-day inspection of Barrick’s mining complex by a delegation of over 15 representatives from Malian ministries and the private consulting firm Iventus Mining. Mali had previously given Barrick a one-week deadline to restart operations, underscoring the urgency of resolving the dispute.
Impact on Barrick and Mali
The resolution is a win-win for both parties. For Barrick, the deal allows the company to resume operations at a time when gold prices are hitting record highs. For Mali, the agreement ensures a steady flow of revenue from one of its most significant mining assets.
Barrick CEO Mark Bristow highlighted the mutual losses caused by the mine’s closure, stating that Mali missed out on its share of revenue, while Barrick faced reduced gold output. In 2024, Barrick paid 460 million toMaliandprojecteda550 million contributions this year if operations had continued uninterrupted.
Challenges in Mali’s Mining Sector
Mali’s military government, which seized power in 2020, has sought greater control over the country’s natural resources, including gold and uranium. This has led to legal disputes, arrests, and nationalizations, as well as threats to deepen ties with Russia.
While some Western miners, like Canada’s B2Gold, reached agreements swiftly, others, like Australia’s Resolute, faced prolonged negotiations. Barrick’s resolution with Mali sets a precedent for future negotiations in the region.
Barrick’s Arbitration and Future Outlook
Barrick had previously launched arbitration proceedings against Mali, and it remains unclear whether the company will drop its case following the new agreement. Despite the challenges, Mali contributed $1.07 billion to Barrick’s revenues in 2024, a 1% increase from the previous year. However, Mali’s industrial gold production fell by 23% year-over-year in 2024, highlighting the economic impact of the dispute.
Stay Informed About Global Mining Developments
The resolution between Barrick Gold and Mali underscores the importance of collaboration in the mining sector. As global demand for gold and other resources grows, such agreements are critical for ensuring sustainable development and economic stability.
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