Barrick Mining Reclaims African Operations as Mali Settlement Ends Months of Crisis

After a prolonged standoff that threatened one of Africa’s most significant gold producing assets, Barrick Mining has secured a pathway back to operational control. The Canadian miner announced it would withdraw its World Bank arbitration case against Mali’s government, marking a dramatic reversal in their dispute over the Loulo-Gounkoto complex.

The Financial Deal Behind the Resolution

The settlement structure totals US$430 million in commitments, though payments are staggered across multiple tranches. According to sources, Barrick will remit 144 billion CFA francs immediately upon signing, with an additional 50 billion covered through VAT credits. A further 50 billion CFA francs was already transferred in the prior year. This layered payment arrangement signals both sides sought to manage cash flow pressures while demonstrating commitment to resolution.

Mali’s Concessions and Permit Renewal

In exchange for the financial settlement, Mali’s government has agreed to critical terms: dropping all charges against Barrick, terminating state control of the joint venture, and initiating procedures to release four detained company employees. Perhaps most crucially for long-term viability, the country confirmed renewal of the Loulo mine operating permit for an additional decade—crucial given its scheduled February expiration.

The accord requires Barrick to formally adopt Mali’s 2023 mining code, the regulatory framework that originally sparked tensions between the parties.

The Crisis That Prompted Negotiations

The confrontation intensified sharply in January when Mali’s military administration halted gold shipments, detained senior Barrick executives, and confiscated ore stockpiles. A local court subsequently installed former health minister Soumana Makadji as state-appointed operator, effectively sidelining the company’s management. Production remained suspended until late October, when a preliminary arrangement with local contractors enabled limited resumption.

Investor Pressure and Leadership Turbulence

The Mali resolution arrives amid intensifying scrutiny from activist investor Elliott Investment Management, which recently accumulated a stake valued at minimum US$700 million in Barrick. Elliott’s involvement has elevated pressure on management performance, particularly given the company’s recent production declines and cost escalation despite elevated gold prices.

Internal leadership tensions erupted publicly in September when longtime CEO Mark Bristow exited abruptly. Reports suggested deteriorating relations with chairman John Thornton stemmed from repeated guidance misses and strategic disagreements. Interim chief Mark Hill has since initiated comprehensive organizational restructuring, including consolidation of the Pueblo Viejo asset into North American operations and merger of Latin American and Asia Pacific divisions.

Strategic Implications and Portfolio Speculation

The reorganization has sparked speculation about potential portfolio separation or acquisition vulnerability. Barrick’s current trading valuation, discounted relative to sector peers, theoretically enables decomposition into separate North American and international entities. The company’s Nevada operations—a core value driver yet site of recent safety concerns—underscore the strategic rationale for portfolio reconfiguration.

The Mali settlement removes a significant operational constraint, but market observers note it represents containment of an existing problem rather than a growth catalyst. With Elliott’s substantial ownership stake now in play, the company faces renewed expectations regarding capital deployment, strategic clarity, and shareholder returns.