Keypoints:
- Verbal accord reached but unsigned
- Talks span taxes, licence, arrests, gold
- Dispute stems from Mali’s mining code
MALI’S government and Barrick Mining have edged closer to resolving their long-running dispute over the Loulo-Gounkoto gold complex, with both sides reaching a verbal understanding on a path forward, two people familiar with the discussions told Reuters on Friday. A formal agreement has not yet been signed, but the shift in tone marks one of the most significant breakthroughs since tensions escalated in 2023.
Barrick declined to comment, but a spokesperson for Mali’s mines ministry described negotiations as ‘progressing well’, though offered no further specifics.
The dispute traces back to Mali’s new mining code, introduced in 2023, which raises taxes and grants the state a greater share in gold operations. The reform unsettled international miners operating in one of Africa’s most resource-dependent economies.
Sensitive issues back on the table
Friday’s meeting followed a letter from Barrick’s interim CEO, Mark Hill, requesting a restart to negotiations. According to one source, the discussions covered a broad set of flashpoints that have strained relations between Bamako and the mining giant.
Central to the talks was the future of Barrick’s licence at the Loulo-Gounkoto complex, due to expire in February 2026. The parties examined the possibility of extending it for 10 years, a move seen as vital for continuity in one of West Africa’s most productive gold hubs.
The fate of four Barrick employees arrested in Mali also featured in the negotiations, alongside the potential return of three metric tonnes of gold seized by the authorities. Another major issue was the prospect of dropping arbitration proceedings initiated by Barrick, signalling an openness to negotiation over prolonged legal confrontation.
Production remains disrupted
Barrick suspended operations at Loulo-Gounkoto in January, deepening concerns over Mali’s economic stability given the sector’s importance to state revenues. Although a Malian court appointed a provisional administrator to restart activity in June, blasting operations did not resume until October and remain limited.
The disruption comes at a moment of broader economic and geopolitical uncertainty for Mali, which has undergone shifts in alliances and seen the departure of several Western partners from its security landscape. Gold remains central to Mali’s fiscal lifeline, heightening pressure on the government to secure a settlement.
Hopeful signs amid complex politics
While progress is tangible, analysts caution that Mali’s natural resources sector has become increasingly politicised. Converting a verbal understanding into a legally binding deal will require careful negotiation, particularly around taxation, the release of personnel, and the return of seized gold.
Still, the latest developments reflect a mutual recognition that continued confrontation is unsustainable. For Mali, stabilising its flagship gold asset is vital. For Barrick, rebuilding certainty at Loulo-Gounkoto remains crucial to its African strategy.
Reuters reports that both sides are expected to continue talks in the coming weeks in pursuit of a written settlement.
