Canadian mining giant Barrick Gold and the Malian government have finalized a key agreement, paving the way for a resolution of an industrial disputes and improve cooperation between the two sides.
After nearly two years of tensions, Canadian mining company Barrick Gold and the Malian transitional government have reached a major agreement to resolve the dispute over Barrick’s mining operations in the country. The agreement comes as Mali seeks to strengthen its sovereignty over its natural resources while maintaining constructive relations with foreign investors.
The dispute began in 2023, when Mali adopted a new mining code increasing state participation in gold projects. The reform has generated financial discords between the government and Barrick Gold, including disputes over tax arrears estimated at around $500 million. The situation has been exacerbated by the detention of several Barrick employees and the seizure of gold intended for export, disrupting operations at the Loulo-Gounkoto mining complex.
According to Reuters, the agreement provides for Barrick Gold to pay 275 billion CFA francs (about $438 million) to the Malian government.
In return, the Malian authorities agree to release the detained employees, return the seized gold, and allow mining operations to resume at Loulo-Gounkoto. The agreement still needs to be formally approved by the government, in an official announcement expected in the coming days.
Implications for Mali’s mining sector
The conclusion of this agreement is of great importance for Mali, whose economy relies heavily on gold mining. In 2024, the country’s industrial gold production fell by 23%, partly due to tensions with mining companies.
Resolving this conflict could not only stabilise domestic production, but also send a positive message to foreign
investors about Mali’s commitment to a more stable and cooperative business environment.
This agreement is part of a broader dynamic in West Africa, where several countries are reassessing the terms of their partnerships with international mining companies.
Countries such as Niger and Burkina Faso are adopting similar strategies to increase their share of natural resource revenues, illustrating a desire to better control and benefit from their mineral wealth.
MD/ac/Sf/fss/as/APA