Barrick Reaches $430 Million Settlement to End Mali Mine Dispute

Barrick Mining has reached a pivotal 430 million dollar settlement with the Government of Mali, bringing an end to a turbulent two year dispute that severely disrupted operations at the Loulo Gounkoto gold complex. The agreement represents one of the most significant conflict resolutions in Africa’s mining sector in recent years, restoring clarity and operational stability to a mine that stands among the top global gold producers. With the settlement finalized, both parties are now positioned to reset relations and focus on reviving production at this world class asset.

Under the terms of the agreement, Barrick will pay 244 billion CFA francs, equivalent to approximately 430 million dollars, with the full amount scheduled for completion within six days of signing. The settlement also incorporates an additional 50 billion CFA francs through VAT credit offsets, along with another 50 billion CFA francs that Barrick had paid the previous year. In return, the Government of Mali will drop all charges against Barrick, its subsidiaries, and employees. Operational control of the Loulo Gounkoto complex will be formally restored to the company, marking the end of the provisional administration imposed during the height of the dispute. Mali has also agreed to release four Barrick employees who have been detained for a year, a key condition for re establishing normal operations. As part of the resolution, Barrick will withdraw its arbitration case filed with the World Bank’s ICSID tribunal.

Loulo Gounkoto is a critical asset for both Barrick and Mali, having produced 723,000 ounces of gold last year, a performance that placed it among the top ten producing mines globally. However, the dispute, which began in 2023 after Mali introduced a new mining code and sought additional tax payments, triggered extensive disruptions. These included the seizure of gold shipments, forced operational shutdowns, and the imposition of provisional state oversight. The conflict also had wider corporate repercussions, with Barrick writing off one billion dollars in revenue and witnessing the departure of former CEO Mark Bristow amid the escalating tensions. With the settlement in place, mine restart and ramp up activities are expected to take between six and twelve months. Investor reaction has been strongly positive, reflected in a surge in Barrick’s share price to a new 52 week high following the announcement.

This resolution marks a major turning point for Africa’s mining landscape. The return to stability at Loulo Gounkoto is likely to reinforce Mali’s reputation as a key gold jurisdiction, while restoring investor confidence that had been shaken by the prolonged dispute. If successfully implemented, the restart of one of Africa’s largest gold operations could stimulate renewed investment, support local economic activity, and enhance regional production levels. More broadly, the settlement underscores the importance of transparent regulatory frameworks and collaborative dispute resolution in sustaining long term growth across the continent’s mining sector.

Mini Glossary

• CFA Franc: The regional currency used across several West African countries, including Mali.
• VAT Credit Offset: A mechanism allowing companies to settle part of their financial obligations by applying accumulated value added tax credits.
• Provisional Administration: A temporary form of state appointed management used during disputes or investigations.
• ICSID Tribunal: An international arbitration body under the World Bank that resolves investment related disputes between companies and states.