Canada’s Barrick Gold has formally resumed operational control of the Loulo-Gounkoto gold mining complex in Mali, ending a two-year standoff with the country’s junta-led government that had disrupted production at one of Africa’s largest and most valuable gold assets.
The restart follows a negotiated settlement under which Barrick agreed to pay approximately $430 million to resolve outstanding claims linked to Mali’s revised mining code, which expanded state participation in mining revenues and strengthened regulatory oversight. In exchange, Malian authorities lifted provisional administration at the mine, released detained Barrick employees, and ordered the return of seized gold bullion.
According to an internal company memo cited by international media, Barrick has begun a phased restart of operations, prioritising mandatory safety checks, workforce training and operational readiness before production ramps up.
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The Loulo-Gounkoto complex—an integrated operation combining the Loulo and Gounkoto sites—produced about 723,000 ounces of gold in 2024, making it a cornerstone of Mali’s mining sector and a major contributor to export earnings. Gold accounts for more than 70% of Mali’s total exports, underscoring the mine’s strategic importance to both the state and investors.
The dispute escalated after Malian authorities confiscated roughly three metric tonnes of Barrick’s gold, valued at about $400 million, under a judicial order enforced by military personnel. The bullion was held in a Bamako bank vault for nearly a year, before a court ruling last week authorised its return—clearing a key obstacle to restarting operations.
Barrick also agreed to withdraw international arbitration proceedings filed against Mali, while the government dropped legal charges against the company and ended emergency oversight measures imposed at the site.
For global mining investors, the resolution highlights both the risks and realities of resource nationalism in parts of Africa, where governments are moving to secure a larger share of revenues from strategic minerals amid fiscal pressures. The Mali episode has been closely watched as a test case for how far host states are willing to go—and how multinational firms respond.
Barrick’s return to operational control removes a major source of uncertainty from its African portfolio, even as the company sharpens its strategic focus on North America and advances plans to list its North American business. Still, the episode is likely to reinforce a more cautious approach by mining firms operating in jurisdictions undergoing regulatory and political transitions.
Source: The High Street Business
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Samuel Kwame Boadu is a Ghanaian entrepreneur, writer, and digital consultant passionate about creating impactful stories and business solutions. He is the Founder & CEO of SamBoad Business Group Ltd, a dynamic company with subsidiaries in digital marketing, logistics, publishing, and risk management.
