Mali has officially renewed Barrick Mining’s gold mining permit for the Loulo site for an additional decade, as announced by the country’s military leadership on Friday. The decision follows a resolution of a protracted dispute regarding profit-sharing and operational control of the Loulo-Gounkoto mining complex, underscoring Mali’s crucial role as a key player in Africa’s gold production landscape.
Resolution of Disputes
In November, Mali and Barrick Mining successfully concluded two years of negotiations, which were ignited by a revised mining code introduced in 2023. This new legislation not only raised taxes but also increased the government’s stake in mining operations. The negotiations resulted in Barrick agreeing to withdraw its case from the World Bank’s dispute tribunal, while the Malian government reciprocated by dropping all charges against the Canadian firm and its affiliates. Additionally, the government committed to reinstating control of the Loulo-Gounkoto complex to Barrick, which has been pivotal for both parties.
Feasibility Study Insights
As part of the process to renew its permit, Barrick conducted a new feasibility study that revealed significant economically viable reserves. The findings suggest that the Loulo site can sustain six years of open-pit mining alongside 16 years of underground extraction. The planned operations are expected to yield an impressive gross annual production of approximately 420,920 ounces of gold. The Loulo-Gounkoto complex, situated in western Mali, stands as the country’s largest gold producer, making it a vital asset for Barrick, which reportedly generated nearly US$900 million in revenues from the mine in 2024.
Economic Implications for Mali
The renewal of Barrick’s permit is not merely a corporate victory; it also signals a stabilising environment for foreign investment in Mali’s mining sector. The collaborative spirit demonstrated by both parties could pave the way for enhanced economic development within the country. Given that gold is a cornerstone of Mali’s economy, the successful operation of the Loulo-Gounkoto complex is likely to have far-reaching ramifications for job creation and local infrastructure.
Why It Matters
The successful negotiation between Mali and Barrick Mining illustrates a broader trend of reconciliation and partnership in the African mining sector, especially in regions rich in natural resources. As Mali navigates its economic challenges, the renewed collaboration with Barrick could serve as a model for other nations seeking to balance state interests with foreign investment. Ultimately, this relationship not only bolsters Mali’s economic resilience but also reinforces its standing as a significant player in the global gold market.
