Mali Renews Barrick's Loulo Gold Mine License for 10 More Years

Mali has officially renewed the operating license for the Loulo gold mine for an additional ten years, securing the future of one of the country’s most strategic mining assets. The permit, held by Barrick Gold Corporation, was extended following the resolution of a prolonged dispute between the government and the mining giant. This development marks a turning point for Mali’s gold sector and reinforces the country’s standing as one of Africa’s leading gold producers.

The disagreement originated from Mali’s 2023 mining code reforms, which introduced higher tax rates and increased state participation in mining projects. These regulatory adjustments were part of a broader resource nationalism strategy aimed at ensuring greater national benefit from extractive industries. However, the reforms triggered tensions with Barrick, which argued that the new terms altered the economic equilibrium of its long standing operations. Negotiations between the government and the company lasted nearly two years and culminated in a settlement reached in November. As part of the agreement, Barrick withdrew its arbitration case at the World Bank tribunal, while Mali agreed to drop legal charges, release detained employees, and restore full operational control of the Loulo-Gounkoto complex to the company.

The renewed license is underpinned by a newly completed feasibility study that confirms the long term viability of the operation. The study outlines six additional years of open pit mining, followed by 16 years of underground mining, extending the life of mine significantly. Estimated annual gross production is projected at approximately 420,920 ounces of gold, reinforcing the asset’s strategic importance. The Loulo-Gounkoto complex, located in western Mali, remains the country’s largest gold producer and Barrick’s most profitable mine. In 2024 alone, the operation generated nearly 900 million dollars in revenue, underscoring its substantial contribution to both corporate earnings and national income.

From a macroeconomic perspective, the license renewal restores operational stability and signals improved investor confidence in Mali’s mining jurisdiction. Gold exports are a cornerstone of Mali’s economy, providing foreign exchange earnings, fiscal revenues, and employment opportunities. By resolving the dispute and securing long term production continuity, Mali strengthens its attractiveness to international mining investors at a time when regulatory certainty is a key determinant of capital allocation. The agreement could also serve as a precedent for balancing resource sovereignty with investment protection across West Africa’s mining landscape, potentially influencing policy approaches in neighboring gold producing countries.

Mini-Glossary:

• Feasibility study: A detailed technical and economic assessment that determines whether a mining project is viable and profitable.
• Open pit mining: A surface mining method where minerals are extracted from a large open excavation.
• Underground mining: A method of extracting minerals from beneath the earth’s surface through tunnels and shafts.
• Arbitration: A legal process where disputes are resolved outside traditional courts by an independent tribunal.
• Resource nationalism: Government policies aimed at increasing state control and revenue from natural resources.
• Life of mine: The estimated period during which a mine is expected to produce minerals economically.

Editor: Vural Burç ÇAKIR