The company confirmed on Monday that both sides had agreed to resolve all outstanding issues, a development that lifted Barrick’s Toronto listed shares by nearly three per cent. The announcement followed earlier indications that a deal was close after months of tension.
As part of the agreement, Barrick will withdraw its arbitration case against Mali at the World Bank’s dispute tribunal. In return, the government will drop all charges against Barrick and its affiliates, restore full operational control of the mine, and release four employees who had been in detention.
Malian authorities have also agreed to extend the mine’s operating permit by a further ten years. According to individuals familiar with the deal, Barrick has accepted the country’s 2023 mining code as part of the settlement. Fresh discussions began after interim CEO Mark Hill wrote to the government urging a negotiated outcome.
The mining ministry in Bamako has not yet commented publicly on the announcement.
Shares in Barrick rose as much as 2.6 per cent in trading following the news. Yet analysts say the long term implications for the company remain uncertain. Martin Pradier of Veritas Investment Research said the resolution might ultimately push Barrick to reconsider its future presence in Mali, arguing that the updated mining code offers no clear improvement over the previous framework and describing the regulatory environment as insufficiently stable for a company of Barrick’s scale.
The dispute stemmed from Mali’s new mining legislation, which aims to increase the state’s share of revenue from gold producers at a time when global gold prices continue to reach record highs. Tensions escalated earlier this year when Mali’s military led government seized three metric tons of gold from the site and appointed a provisional administrator to run the mine, prompting Barrick to write off around one billion dollars in revenue. The episode also coincided with the departure of former CEO Mark Bristow.
Before the conflict, the Loulo Gounkoto operation had been one of Barrick’s most profitable assets, generating close to nine hundred million dollars in revenue in 2024.