Canadian mining giant, Barrick Gold resumes control at one of Africa’s largest gold mines after $430m settlement

3 weeks ago 28

Canada’s Barrick Gold has officially resumed operational control of its flagship gold mining complex in Mali, marking a decisive end to a two-year dispute with the country’s junta-led government over mining revenues and regulatory authority.

Canadian mining giant, Barrick Gold resumes control at one of Africa’s largest gold mines after $430m settlement

Barrick Mining has resumed control of the Loulo-Gounkoto gold mining complex in Mali after a two-year dispute with the junta-led government.
Operations at the complex will restart gradually with an initial focus on safety and training for personnel.
The settlement follows prolonged negotiations sparked by Mali's revised mining code, which expanded state control over mining revenues.
The resolution of this dispute involved payment of claims by Barrick, the return of confiscated gold, and the release of detained employees.

The Loulo‑Gounkoto complex in Mali is one of Africa’s largest gold mines, producing around 723,000 ounces of gold in 2024. Operated by Barrick Gold, the integrated Loulo and Gounkoto sites combine high-grade reserves with extensive infrastructure, making the mine a major contributor to Mali’s gold output and export earnings.

The initial phase will prioritise mandatory safety and operational training for employees and contractors, according to the memo signed by Sebastiaan Bock, Barrick’s Director of Operations for Africa and the Middle East.

The resumption follows a settlement reached last month between Barrick and Mali’s military government after prolonged negotiations triggered by the country’s revised mining code.

Mali’s dispute with Barrick gold

The dispute escalated when Malian authorities seized three metric tonnes of Barrick’s gold, worth about $400 million, in a military helicopter operation carried out under a judicial confiscation order.

The bullion was held in a bank vault in Bamako for nearly a year. Last week, a Malian judge ordered the return of the gold to the company, clearing a major obstacle to the restart of operations.

In return, the government dropped charges against the company, released four Barrick employees detained since November last year, and ended the provisional administration imposed on the mining complex.

Gold is central to Mali’s economy, accounting for more than 70% of exports, and the Loulo-Gounkoto site is one of the country’s most productive assets. The episode has been closely watched by investors as an example of rising resource nationalism across parts of Africa, where governments are seeking greater control over strategic minerals.

Barrick’s return to operational control comes as the company signals a sharper strategic focus on North America, with plans to advance an IPO of its North American business under interim chief executive Mark Hill.

The Mali resolution removes a significant source of political and operational risk, even as mining firms across the continent brace for tougher state scrutiny.

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