Mali, Barrick Gold resolve bitter mining dispute

By Oumar Sankare

BAMAKO, Mali (AA) - Barrick Gold announced Monday that it has signed a comprehensive settlement with the Malian government, ending all disputes over the Loulo-Gounkoto gold complex.

“All charges brought against Barrick, its affiliates and employees will be dropped and the legal steps for the release of the four detained Barrick employees will be undertaken,” Barrick’s official statement declared.

The agreement ends months of provisional state administration, withdraws Barrick’s arbitration case filed with the International Centre for Settlement of Investment Disputes (ICSID) and resolves judicial probes.

The four employees are expected to be freed within days. They were detained in Mali on allegations of money laundering, financing terrorism and tax-related offenses stemming from a dispute between the company and the Malian government over a new mining code, which increases taxes and the state's share in mining projects, which Barrick initially resisted.

The Minister of Economy and Finance, Alhousseini Sanou, welcomed the deal.

“Today we are very happy to have signed this agreement that ends all financial, legal and environmental disputes and restarts relations on solid foundations. By moving to the 2023 Mining Code, we expect an additional annual impact of around 220 billion CFA francs ($387 million) — roughly 70 billion ($123 million) in taxes, 80 billion ($140 million) in dividends, 19 billion ($33 million) from the special tax, plus savings on fuel subsidies and contributions to local funds.”

“We want to remain a serious state that respects its laws while inviting investors. We are fully committed to ensuring Barrick can operate in the best conditions, for the benefit of shareholders, workers, local communities and the entire Malian population. A new page is opening,” he added.

Minister of Mines Amadou Keita emphasized stability.

“The companies will migrate to the 2023 Code, which is excellent for Mali and for Barrick. The State commits to renewing the Loulo-SA permit and signing new establishment conventions so the mines can operate in complete serenity,” Keita said.

Mamadou Samake, Barrick's director of West Africa, praised the negotiation process.

“This signature was possible because we faced a patient partner who understood its interests. It took time for trust to be built and for everyone to grasp the stakes, but in the end, we put the common interest first.”

With the agreement sealed, normal operations resume immediately at Loulo-Gounkoto, marking the end of a crisis that had rattled investor confidence in one of West Africa’s top gold producers and opening a more predictable chapter for Mali’s most strategic mining partnership.

The dispute arose from Mali’s claims that Barrick underreported production and owed billions of CFA francs in taxes under old conventions. Barrick insisted that it had complied fully and viewed the measures as unlawful pressure.

Gold represents over 70% of Mali’s export revenue, making Loulo-Gounkoto — one of Africa’s largest gold mines — vital to the national budget.

Under the settlement, the mines will now operate under Mali’s 2023 Mining Code instead of the 1991 framework, a shift the government says will significantly boost state revenue.