Barrick Mining has struck a settlement worth about $430 million with the government of Mali, ending a protracted dispute over the Loulo-Gounkoto gold complex, Bloomberg News reported, citing people familiar with the agreement. The deal, valued at CFA244bn, brings to a close two years of tense negotiations between the Canadian mining giant and one of Africa’s leading gold producers.
The agreement was finalised on Monday and aligns with earlier reporting by Reuters, which confirmed that discussions between both sides had accelerated in recent weeks. While Malian officials have not yet commented publicly, the settlement marks a significant breakthrough in a relationship that had become increasingly strained.
Years of disagreements reach resolution
Barrick and Mali had been locked in disagreements over tax assessments, operational oversight, and financial liabilities linked to the Loulo-Gounkoto mine. The dispute escalated to the point where Barrick lodged a case at the World Bank’s International Centre for Settlement of Investment Disputes.
According to Bloomberg News, Barrick will now withdraw that arbitration claim. Mali, in return, has agreed to drop all charges against the company and its affiliates, restore full operational control to Barrick, and release four employees who had been detained during the dispute. The reciprocal move is expected to ease investor concerns over political and regulatory risks in the region.
Industry observers say the settlement allows both sides to reset their relationship at a time when Mali’s gold sector remains critical to government revenue and international confidence.
Payment terms outlined in report
The settlement structure includes several tranches, Bloomberg News reported. Barrick is expected to pay CFA144bn within six days of signing the agreement. Another CFA50bn will be covered through VAT-credit offsets. A further CFA50bn had already been paid last year as part of earlier negotiations, the publication said.
The payment schedule underscores the scale of the disagreement and the financial implications for both sides. Loulo-Gounkoto remains one of West Africa’s most productive gold operations and a cornerstone of Mali’s export economy.
Industry analysts note that clearing the dispute should help stabilise operations at the mine and provide greater predictability for future investments in Mali’s extractive sector.
Silence from officials as deal takes shape
Reuters reported that Barrick declined to comment on the settlement. Mali’s Ministry of Mines did not respond to its request for comment. Analysts say the government may wait until the first tranche of payments is completed before issuing a full statement.
The broader mining community is watching closely, as the deal could influence how other governments and multinational operators negotiate long-running tax and operational disagreements. The resolution may also help Mali project greater stability to international investors amid wider political transitions in the country.
