Canadian mining company Barrick Gold has reached an agreement with the Malian government to resolve a nearly two-year dispute over its mining operations in the country.
The deal, which is awaiting formal approval from Mali, could be officially announced as early as Thursday.
The disagreement started in 2023 when Mali introduced a new mining code that increased the government’s stake in gold mines.
This led to tensions between Barrick and the government, affecting the operations of the Loulo-Gounkoto mine.
Under the new agreement, Barrick will pay Mali $438 million in exchange for the release of detained employees, the return of seized gold, and permission to resume mining activities.
While sources close to the discussions confirm the deal is almost finalized, unexpected obstacles could still arise before its official confirmation.
Following the news, Barrick’s stock rose by 3.37% on the Toronto Stock Exchange.
Meanwhile, a Malian government delegation and a private consulting firm recently completed a three-day inspection of Barrick’s mining complex.
Last week, Mali gave Barrick a one-week deadline to restart operations.
This agreement comes at a time when gold prices are at record highs, but Barrick’s stock performance has not reflected the surge.
CEO Mark Bristow recently stated that the mine closure had negatively impacted both Barrick and Mali, as the country was losing its share of revenue each week the mine remained inactive.
Last year, Barrick contributed $460 million to Mali’s government and was expected to pay around $550 million in 2025 if mining had continued without disruption.
The halt in operations also led Barrick to lower its gold production forecast for the year to between 3.2 million and 3.5 million ounces, down from 3.9 million ounces in 2024.
Mali’s military-led government, which took power in 2020, has been pushing for greater control over its natural resources.
The country’s gold production dropped by 23% in 2024 compared to the previous year.
Other international mining companies, such as Canada’s B2Gold, have resolved similar disputes with Mali, while some, like Australia’s Resolute, faced delays, including the detention of its CEO during negotiations.
Barrick had previously filed an arbitration case against Mali, but it is unclear whether the company will withdraw its legal challenge now that an agreement has been reached.
Mali contributed $1.07 billion to Barrick’s total revenue in 2024, a slight increase from the previous year.