Barrick Gold Secures Key Resolution in Mali, Paving Way for Mine Restart

A protracted dispute between Barrick Gold and Mali’s military government has been resolved, allowing operations to resume at the critical Loulo-Gounkoto mining complex. The settlement, which involves a significant payment from the Canadian miner, removes a major overhang for the company and its investors.

Strategic Settlement Terms Unlock Operations

Following a two-year impasse, Barrick has reached a comprehensive agreement with Malian authorities. The cornerstone of the deal is a payment of 244 billion CFA francs (approximately $437 million) to the state. In exchange, Barrick regains full operational control of the Loulo-Gounkoto mine, one of Africa’s largest gold-producing assets.

The resolution also stipulates the return of three tonnes of seized gold, valued at roughly $400 million. This gold had been confiscated by Malian authorities via military helicopter in January 2025, marking the peak of a conflict rooted in the country’s revised 2023 mining code. As part of the settlement, all legal proceedings against the company are discontinued, four detained employees are to be released, and the court-ordered trusteeship of the mine is terminated. Consequently, Barrick has withdrawn its arbitration claim filed with the International Centre for Settlement of Investment Disputes (ICSID).

Gradual Ramp-Up Following Production Halt

The company has confirmed that the process of restarting the mine is now underway. Initial steps include mandatory safety retraining for personnel and contractors before full-scale production can recommence. The operational suspension, which began in January 2025, had severe consequences, including the seizure of gold inventories and the forced administration of the site.

In 2024, prior to the shutdown, Loulo-Gounkoto produced approximately 723,000 ounces of gold, accounting for about 15% of Barrick’s total output. The mine had to be entirely excluded from the company’s 2025 production guidance. Management now indicates it could be reintegrated into forecasts for 2026.

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Resolution Coincides with Corporate Restructuring

This settlement arrives during a period of strategic repositioning for Barrick. Under interim CEO Mark Hill, who succeeded Mark Bristow in September 2025, the company is evaluating a spin-off of its North American gold mines into a separate publicly traded entity. This move, partly influenced by activist investor Elliott Investment Management, aims to mitigate geopolitical risk and address a perceived valuation gap.

The proposed new company, often referred to as “NewCo,” would consolidate Barrick’s lowest-risk, longest-life assets, including its Nevada operations and the Pueblo Viejo mine in the Dominican Republic.

Market Performance and Forward-Looking Challenges

Investors have responded positively to the developments. Barrick’s share price has advanced 17% over the past month and shows a gain exceeding 35% across three months. The stock currently trades at a price-to-earnings ratio of around 21, below the industry average of 36.8. The company’s most recent quarterly dividend was $0.175 per share.

A significant future test remains: the mining license for Loulo is set to expire in February 2026. Mali’s new mining legislation permits the state to claim up to a 35% stake in mining projects, an increase from the previous 20% threshold. It remains to be seen how this revised policy will impact the renewal of Barrick’s operating contract.