What's Happening?
Barrick Mining has successfully resolved its dispute with the government of Mali concerning the Loulo and Gounkoto gold mines. The disagreement began in 2023 when Mali introduced a new mining code that
increased the government's share in domestic gold mines and raised taxes. Barrick and Mali attempted negotiations until December 2024, but failed to reach an agreement, leading Barrick to file an arbitration claim with the International Centre for Settlement of Investment Disputes (ICSID). The resolution announced on November 24, 2025, allows Barrick to regain operational control of the Loulo-Gounkoto complex, which is 80% owned by Barrick and 20% by the Malian government. The agreement also ends the state's blockade of gold exports from the complex and secures the release of four Barrick employees arrested in August 2024.
Why It's Important?
The resolution of this dispute is significant for both Barrick Mining and the Malian economy. Barrick's operations have contributed substantially to Mali's economy, with investments exceeding USD 10 billion over the past 30 years. The Loulo and Gounkoto mines reportedly account for 5% to 10% of Mali's GDP annually. The agreement not only restores Barrick's operational control but also ensures the continuation of gold exports, which are vital for Mali's economic stability. This development reflects a broader trend in Africa where countries are reclaiming greater control over their natural resources, as seen in similar actions by Burkina Faso and Niger.
What's Next?
With the dispute resolved, Barrick can focus on optimizing its operations in Mali and potentially expanding its investments in the region. The Malian government may continue to pursue policies that increase its share of natural resource revenues, which could lead to further negotiations with other mining companies. The resolution may also influence other African nations in their dealings with foreign mining firms, encouraging them to seek more favorable terms.
Beyond the Headlines
The resolution of this dispute highlights the complex dynamics between foreign investors and host countries in the mining sector. It underscores the importance of balancing national interests with the need to attract and retain foreign investment. The situation in Mali may prompt other countries to reassess their mining policies, potentially leading to a shift in how natural resources are managed and shared across the continent.
