Mali’s military-led government has approved a draft decree extending the operating permit for Barrick Mining’s Loulo-Gounkoto gold complex by a further 10 years, formally ending a high-stakes dispute that had cast uncertainty over one of Africa’s most valuable gold assets.
The renewal marks a reset in relations between Bamako and the Canadian miner after nearly two years of tension triggered by Mali’s 2023 mining code. The revised code raised taxes and expanded state participation in extractive projects, prompting friction with foreign operators and leading Barrick to initiate arbitration proceedings at the World Bank’s dispute resolution tribunal.
Under the new agreement, Barrick has withdrawn its arbitration case, while Mali has dropped legal charges against the company and its affiliates, released detained staff, and restored full operational control of the mining complex. The settlement follows a broader November understanding between both parties aimed at resolving regulatory and fiscal disagreements.
The Loulo-Gounkoto complex, located in western Mali, is the country’s largest gold producer and one of Barrick’s most profitable global operations. In 2024, the mine generated approximately $900 million in revenue, underscoring its strategic importance to both Mali’s public finances and international gold markets.
Mali’s transitional leader, Assimi Goïta, described the agreement as restoring “stability and clarity” to a sector that underpins national revenue. Gold remains Mali’s primary export and a critical source of foreign exchange, making policy certainty in the mining sector essential for economic stability.
As part of the licence renewal, Barrick completed a new feasibility study confirming economically viable reserves that support roughly six years of open-pit mining and up to 16 years of underground production. The study projects annual output of about 420,920 ounces, reinforcing the long-term commercial viability of the asset.
For investors, the deal signals a cautious easing of resource nationalism tensions that have surfaced across several African jurisdictions in recent years. Governments have increasingly sought greater revenue shares and ownership stakes in extractive projects, while multinational mining firms have pushed back against abrupt regulatory changes that affect profitability and operational continuity.
The Mali-Barrick settlement reflects a negotiated compromise: enforcement of the revised mining framework alongside guarantees of operational stability. Analysts suggest the agreement may serve as a reference point for future negotiations between African governments and global resource companies navigating similar policy reforms.
Beyond corporate implications, the renewal provides breathing space for Mali’s economy at a time of political transition and fiscal pressure. Continued production at Loulo-Gounkoto ensures sustained export earnings, employment, and tax revenues, while preserving Mali’s standing as one of Africa’s leading gold producers.
The 10-year extension therefore represents more than a regulatory adjustment. It signals a recalibration of state–investor relations in a sector that remains central to Mali’s economic future and to global supply chains in the precious metals market.
