What's Happening?
Mali's government has approved a draft decree to renew Barrick Mining's Loulo gold mining permit for an additional 10 years. This decision follows the resolution of a dispute between Mali and Barrick over profit-sharing and control of the Loulo-Gounkoto
gold mining complex. The dispute, which began in 2023, was triggered by a new mining code that increased taxes and the state's stake in mining projects. As part of the resolution, Barrick agreed to withdraw its arbitration case at the World Bank's dispute tribunal, while Mali dropped charges against the company and returned operational control of the complex to Barrick. The renewed permit is supported by a feasibility study indicating economically viable reserves for six years of open-pit mining and 16 years of underground mining, with an estimated annual production of 420,920 ounces of gold.
Why It's Important?
The renewal of Barrick Mining's Loulo license is significant for both Mali and Barrick. For Mali, one of Africa's leading gold producers, the continuation of operations at the Loulo-Gounkoto complex ensures sustained economic benefits and employment opportunities. The complex is Mali's largest gold producer and a major revenue source, generating nearly $900 million in 2024. For Barrick, the resolution of the dispute and the renewal of the license secure the company's interests in one of its most profitable mines. This development highlights the importance of stable regulatory environments for international mining companies operating in resource-rich countries.
What's Next?
With the license renewed, Barrick is expected to continue its operations at the Loulo-Gounkoto complex, focusing on maximizing production and profitability. The company may also explore further investment opportunities in Mali, given the resolution of the dispute and the improved regulatory environment. For Mali, maintaining a favorable investment climate will be crucial to attracting and retaining foreign investment in its mining sector. The government may continue to engage with other mining companies to ensure compliance with the new mining code while fostering economic growth.
