Mali’s military-led government has officially approved a draft decree extending Barrick Mining’s operating permit for the Loulo-Gounkoto gold complex by 10 years. This decision brings a conclusive resolution to a lengthy dispute that had impacted one of Africa’s key gold mining assets.
This extension follows a November agreement that settled tensions arising from Mali’s 2023 mining code reforms, which introduced higher taxes and increased state participation in mining projects.
As part of the agreement, Barrick Mining, a Canadian company, withdrew its arbitration case at the World Bank dispute tribunal. In return, Mali dropped legal charges against Barrick and its affiliates, released detained employees, and reinstated the company’s operational control over the mine.
Mali’s leader stated that the agreement “restores stability and clarity” to the mining sector, which is a crucial source of national revenue. This underscores the government’s stance that while reforms will be implemented, negotiated solutions remain achievable.
In the renewal process, Barrick completed a new feasibility study confirming economically viable reserves sufficient for about six years of open-pit mining and 16 years of underground mining. The study forecasts an annual gross output of approximately 420,920 ounces.
The Loulo-Gounkoto complex, located in western Mali, is the country’s largest gold producer and Barrick’s most profitable asset. In 2024, it generated around $900 million in revenue (in current US dollars), highlighting its strategic significance for both Barrick and the Malian government.
For investors and policymakers, this deal represents a cautious reset in the relationship between African governments and global mining companies amid growing resource nationalism.