Barrick Gold Agrees to $438 Million Deal to Restart Mining in Mali, Report Says

Barrick Gold has agreed to pay $438 million to settle its long-running conflict with the Malian government. The Canadian mining company has reportedly signed the deal and is awaiting approval from Mali’s authorities. According to an exclusive report from Reuters, an official announcement could come as early as Thursday, but last-minute hurdles could still delay it.

The dispute began in 2023 when Mali introduced a new mining code. The law increased the government’s share in mining revenues and removed tax exemptions for companies. This sparked tensions with Barrick, leading to the seizure of nearly three tonnes of gold and the detention of some employees. Under the new agreement, Mali will release the detained workers and return the confiscated gold. Barrick will also regain full access to its Loulo-Gounkoto gold mine.

More than 15 officials from Malian ministries and the consulting firm Iventus Mining completed a three-day inspection of Barrick’s mining site on Wednesday, sources said. Late last week, authorities also gave Barrick one week to resume operations.

The dispute has vastly reduced Barrick’s gold production. The company lowered its annual output forecast to between 3.2 million and 3.5 million ounces. This drops from 3.9 million ounces last year to 4.1 million in 2023. Despite record-high gold prices, Barrick’s stock has not seen similar gains.

The agreement comes as Mali, along with Niger and Burkina Faso, pushes for more control over its natural resources. The three countries are working to reduce their dependence on foreign mining firms. Neither Barrick nor Mali’s mines ministry has spoken on the matter yet.

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