Barrick Gold Reaches Landmark Agreement in Mali

Barrick Gold has successfully negotiated a comprehensive settlement with Mali’s military government, bringing closure to a protracted and costly dispute over the Loulo-Gounkoto mining complex. The resolution triggered an immediate market response, with Barrick’s shares surging more than 8% during Monday’s trading session.

Financial Terms and Operational Restoration

The mining giant will disburse approximately $430 million (244 billion CFA francs) to resolve all outstanding conflicts. According to the agreement’s payment schedule, $253 million will be transferred within six days of signing. An additional $88 million will be settled through tax credits, while Barrick had already paid $88 million earlier in 2024.

This financial settlement restores Barrick’s complete operational control over the mining complex. All criminal allegations against the company, its affiliated entities, and employees will be dropped. The arrangement also secures the immediate release of four detained Barrick employees. The conclusion of this dispute ends a period that cost the corporation over $1 billion in lost revenue.

Background of the Conflict

Tensions began escalating in 2023 when Mali’s military government implemented new mining legislation featuring increased taxation rates and mandating 35% state participation in mining projects. The situation deteriorated significantly in 2024 when Malian authorities arrested four senior Barrick executives on allegations of financial misconduct. An arrest warrant was also issued for former CEO Mark Bristow on suspicion of money laundering.

The confrontation intensified as Mali blocked gold exports and confiscated approximately three tons of gold belonging to Barrick’s subsidiary companies. By January 2025, Barrick suspended operations at Loulo-Gounkoto and initiated international arbitration proceedings. The Malian judicial system responded in June 2025 by seizing control of the mine.

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Favorable Market Conditions and Strategic Developments

The resolution arrives during exceptionally favorable market conditions, with gold prices hovering near record highs. Barrick has demonstrated strong performance throughout the year, with Loulo-Gounkoto having generated approximately $900 million in revenue during 2024, representing a substantial portion of the corporation’s African operations.

Simultaneously, activist hedge fund Elliott Management has established a position worth at least $700 million in Barrick, making it one of the company’s top ten shareholders. Market reports indicate Elliott is considering pushing for a corporate separation that would divide Barrick’s North American operations from its more volatile international assets in West Africa.

Strong Quarterly Performance and Strategic Repositioning

Barrick reported exceptional third-quarter 2025 results, achieving record net earnings of $1.3 billion on revenues of $4.1 billion – representing a 23% year-over-year increase. The company is concurrently divesting non-strategic assets, with announced 2025 sales totaling approximately $2.6 billion, including the Hemlo gold mine in Canada for up to $1.09 billion.

The Mali settlement enables Barrick to withdraw its ongoing arbitration claim, eliminating a significant source of uncertainty for investors. For one of the world’s largest gold producers with operations across 18 countries, this development reduces perceived political risk and clears the path for continued operations in West Africa.