A major contractor at Barrick Mining’s flagship gold complex in Mali is shutting down its operations and laying off more than 600 employees, sources told Reuters, highlighting continuing uncertainty around one of Africa’s largest gold-producing sites.
Gounkoto Mining Services (GMS), the principal contractor operating at the Loulo-Gounkoto gold complex, has begun terminating staff contracts as Barrick scales back activity following a prolonged dispute with Mali’s military-led government over taxes and ownership issues, the sources said.
The layoffs affect workers employed at the Gounkoto open-pit mine and the Yalea North underground operation, according to two sources familiar with the matter.
Employees have reportedly received termination letters and are currently serving notice periods after undergoing mandatory medical examinations.
Neither Barrick nor GMS immediately commented publicly on the development.
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A spokesperson for Mali’s mines ministry described the issue as an “internal problem” and declined further comment.
The Loulo-Gounkoto complex, located in western Mali near the Senegalese border, is among Africa’s largest gold mining operations and has long been a critical source of export revenue for the country.
Operations at the site were disrupted during a months-long confrontation between Barrick and Malian authorities over mining revenues and state participation in the project.
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The dispute reflected broader tensions between Mali’s transitional military government and foreign mining companies after the authorities introduced a revised mining code aimed at increasing state revenues from the sector.
Barrick eventually regained operational control of the complex from provisional administrators in December, but production has remained below historical levels.
Sources told Reuters that Barrick does not plan to renew its contract with GMS in 2026, although the company’s intentions for subsequent years remain unclear.
The departure of the contractor is seen by industry observers as a sign the Canadian miner is reassessing exposure to politically and operationally challenging assets.
Production targets at Loulo-Gounkoto have reportedly been lowered for 2026.
According to one source familiar with internal figures, the complex produced around 80,000 ounces of gold during the first quarter of the year and is expected to produce approximately 103,000 ounces in the second quarter.
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Those figures remain significantly below output levels recorded before the standoff with the Malian state.
Mali’s overall gold production fell by 23 percent last year, largely because of disruptions at the Loulo-Gounkoto complex.
Gold remains Mali’s leading export commodity and a major source of foreign currency earnings.
The country is one of Africa’s top gold producers alongside Ghana and South Africa, hosting operations run by several international mining firms.
Sources said GMS’s withdrawal was linked primarily to reduced investment and operational challenges rather than insecurity.
Although Mali continues to face attacks by jihadist insurgent groups linked to Al-Qaeda and the Islamic State group, recent assaults have occurred far from the mining complex.
One source cited deteriorating infrastructure at the site, including maintenance problems linked to shortages of spare parts and reduced operational spending during the dispute period.
Despite the setbacks, some activity has resumed at parts of the complex.
Two open-pit mines, Baboto and Gara West, are back in operation under local contractors Corica and Nieta Mining, according to one source.
Industry insiders also said expatriate workers who departed during the dispute are expected to begin returning later this year as investment gradually resumes.
Analysts say the future of Loulo-Gounkoto will be closely watched by foreign investors assessing political and regulatory risks in Mali’s mining sector.
The transitional government has defended its tougher stance on mining contracts as necessary to ensure the country benefits more fairly from its natural resources.
Mining companies, however, have warned that uncertainty over regulations and operational control could deter future investment in one of West Africa’s most important gold-producing regions.
