Barrick Gold and Mali: A Struggle Over Mining Rights and Economic Sovereignty

Barrick Gold Corporation, one of the world’s largest gold mining companies, finds itself locked in a high-stakes dispute with the Malian government over mining rights and regulatory changes. The conflict, which has been ongoing since 2023, centers around Mali’s new mining code, which increases the state’s share in mining ventures and alters revenue-sharing agreements. As negotiations continue, the resolution of this dispute carries significant implications not only for Barrick but also for Mali’s economy and the global gold market.

The Origins of the Dispute: Mali’s New Mining Code

The Malian government introduced a new mining code in August 2023 to increase state participation in mining projects. The key elements of the new code include:

• Increased Government Stake: The state now holds a 10% free share in mining projects and has the option to acquire an additional 20%, raising its total possible share to 35%.
• Higher Royalties and Taxes: Mining companies now face increased royalties and corporate taxes, aimed at ensuring Mali receives a greater portion of mining profits.
• Stricter Local Content Regulations: Foreign companies must partner with local businesses, and a portion of mining revenues must be reinvested in Mali’s economy.

Barrick Gold, which operates the Loulo-Gounkoto mining complex, has been particularly affected by these changes, leading to months of negotiations and escalating tensions.

Gold Seizure and Export Blockade Escalate Tensions

The situation took a dramatic turn in late 2024 and early 2025:

• Gold Export Blockade: In November 2024, Malian authorities blocked Barrick’s gold exports, citing non-compliance with the new mining code.
• Seizure of Gold Stocks: On January 13, 2025, the government seized three metric tons of gold from the Loulo-Gounkoto complex, prompting Barrick to temporarily suspend operations.
• Employee Detentions: Several Barrick employees were detained on allegations of financial misconduct and regulatory violations.

Negotiations and Attempts at Resolution

Despite these challenges, both parties have been engaged in ongoing discussions:

• Initial Agreement: In February 2025, Barrick signed an agreement to resolve the dispute, pending final approval from the Malian government.
• Delays in Approval: Government approvals have been slow, a common issue in Mali’s bureaucratic processes, but progress is being made toward a resolution.

Economic and Industry Impact

The dispute has had significant ramifications:

• Decline in Gold Production: Mali’s industrial gold production fell by 23% in 2024, largely due to regulatory uncertainty and mining disruptions.
• Investor Uncertainty: The situation has created concerns about the investment climate in Mali, with other mining firms closely watching the Barrick negotiations.
• Regional Implications: Other resource-rich African nations are considering similar policies, which could reshape the mining industry across the continent.