Faith Nyasuguta
Canadian mining giant Barrick Gold has reached a major agreement with Mali’s government, ending a nearly two-year dispute over its gold mining operations in the West African nation. The deal, which still awaits official approval from Malian authorities, is expected to be announced soon.
The conflict began in 2023 when Mali introduced a new mining code aimed at increasing the country’s share of its natural resources. This move led to tensions with Barrick Gold, one of the largest gold producers in Mali, especially over the revenue owed to the government. The disagreement escalated when Mali’s military government seized three tons of gold,worth around $180 million,from Barrick and detained some of its employees.
Under the new agreement, Barrick will pay Mali 275 billion CFA francs (about $438 million). In return, Mali will release the detained employees, return the seized gold, and allow Barrick to fully resume operations at its key Loulo-Gounkoto mine. This mine is one of Mali’s biggest gold producers and a significant source of revenue for both Barrick and the Malian economy.
The suspension of operations had financial consequences for both parties. Barrick’s CEO, Mark Bristow, had previously stated that the ongoing conflict was hurting not only the company but also Mali’s economy. With global gold prices reaching record highs, restarting the mine is expected to boost the country’s earnings and help stabilize the mining sector, a key part of Mali’s economy.
However, despite the rising value of gold, Barrick’s stock has yet to benefit from the global price surge, partly due to the uncertainty surrounding its operations in Mali.
This agreement highlights a growing trend in West Africa, where countries like Mali, Niger, and Burkina Faso are pushing for greater control over their natural resources. In recent years, these nations have sought to renegotiate deals with foreign mining companies, pursued nationalization efforts, and formed strategic partnerships with countries like Russia, aiming to maximize profits from their vast mineral wealth.
For Mali, this deal not only ends a high-profile legal battle but also strengthens its position in future negotiations with international companies. For Barrick, it secures access to one of its most valuable gold assets, ensuring that its operations can continue without further disruptions.
The resolution is a win for both sides, offering hope for more stable cooperation between Mali and foreign investors in the future.
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