Barrick Gold Reaches Landmark $430 Million Settlement to Resolve Mali Dispute

Shares of Barrick Gold surged dramatically this week, climbing 8% to establish a new 52-week peak. This powerful market response followed the Canadian mining giant’s announcement of a comprehensive $430 million resolution with Mali’s military government, effectively concluding a bitter two-year confrontation that had severely impacted one of Africa’s most significant gold operations.

Settlement Terms and Immediate Benefits

On November 24, 2025, Barrick Gold confirmed it had reached a definitive agreement with the Republic of Mali, valued at 244 billion CFA francs (approximately $430 million). This settlement resolves all outstanding disputes concerning the Loulo-Gounkoto mining complex. Under the arrangement, Barrick will transfer 144 billion CFA francs to the Malian government within six days of signing. An additional 50 billion CFA francs will be settled through VAT credits, while a further 50 billion CFA francs had already been paid by the company the previous year.

The agreement delivers crucial outcomes for the mining corporation:
– All criminal allegations against the company and its personnel are dismissed
– Four imprisoned Barrick managers will be released
– The state-mandated custodianship of the mining complex is terminated
– Barrick regains complete operational command of its assets
– The ongoing arbitration case at the International Centre for Settlement of Investment Disputes will be withdrawn

Background: A Precious Asset and Escalating Tensions

At the heart of this conflict lies the Loulo-Gounkoto complex, jointly owned by Barrick (80%) and the Malian state (20%). This operation represents one of the world’s ten largest gold mines, having yielded an impressive 723,000 ounces of gold during 2024.

The dispute originated in 2023 when Mali’s military leadership implemented a revised mining code designed to increase state participation in mining ventures to 35%. The situation deteriorated significantly in 2024 when Malian authorities detained four senior Barrick executives over alleged financial violations, issued an arrest warrant for then-CEO Mark Bristow on money laundering suspicions, confiscated three metric tons of gold, and suspended all gold exports. By June 2025, the government had placed the facility under temporary state administration.

Should investors sell immediately? Or is it worth buying Barrick?

These developments forced Barrick to suspend operations in January 2025, prompting the initiation of international arbitration proceedings. The operational shutdown resulted in approximately $1 billion in lost revenue.

Leadership Transition and Operational Challenges

The Mali crisis played a substantial role in the unexpected departure of CEO Mark Bristow in September 2025. Under Bristow’s leadership, Barrick had grown into the world’s second-largest gold producer through aggressive expansion into high-risk jurisdictions, a strategy that simultaneously elevated the company’s risk profile. His successor, Mark Hill, previously overseeing South and Central American operations along with Asia-Pacific activities, now faces the complex task of restoring the mine to full production. Market experts at Jefferies estimate the reactivation process will require six to twelve months before Loulo-Gounkoto reaches previous output levels.

Elliott Management’s Strategic Position

Adding another layer to this corporate narrative, activist hedge fund Elliott Management has accumulated a substantial stake in Barrick Gold, according to Financial Times reports. With an estimated investment exceeding $700 million, Elliott now ranks among the company’s ten largest shareholders. Industry observers anticipate the fund will advocate for a strategic separation, potentially dividing Barrick’s stable Nevada operations from its higher-risk assets across Africa and Asia.

Market Implications and Forward Outlook

The resolution of the Mali conflict eliminates a significant overhang on Barrick’s valuation. The company’s equity has dramatically outperformed competitors throughout 2025, registering gains exceeding 143% compared to industry peers like Newmont and Agnico Eagle. Nevertheless, fundamental questions persist regarding the appropriate level of geopolitical risk for mining investors. Despite this recent diplomatic achievement, Barrick’s geographical concentration remains under scrutiny, particularly with Elliott Management’s growing influence and continued investor pressure for optimized portfolio management.