Barrick agrees to $430 million settlement with Mali over gold mines

Barrick Mining Corp. has agreed to a 244 billion CFA francs ($430 million) settlement with Mali, ending a two-year dispute that had halted operations at one of the company’s key gold mines, according to sources familiar with the matter.

Under the settlement, Barrick will pay 144 billion CFA francs within six days of signing the agreement with the Malian government, according to Bloomberg. An additional 50 billion CFA francs will be offset through VAT credits, while a similar instalment was already paid last year.

The Canadian miner will regain operational control of the Loulo-Gounkoto complex and withdraw its arbitration claims against Mali, Barrick said in a statement on Monday.

In return, the Malian government will drop all charges against Barrick and take legal steps to release four employees detained during the dispute.

If operations restart quickly, the Loulo-Gounkoto mine could produce around 670,000 ounces of gold next year, generating an estimated $1.5 billion in operating cash flow, according to BMO Capital Markets analysts.

Barrick’s shares surged 8.5% to a 13-year high on Monday, following the settlement that resolved a dispute stemming from Mali’s 2023 mining code, which increased royalties and government stakes.

The dispute escalated when Mali demanded back taxes, detained company staff, issued an arrest warrant for former CEO Mark Bristow, and seized control of the mines.

Under the new agreement, Mali expects to receive roughly 90 billion CFA francs in annual dividends, in addition to royalties and government stakes mandated by the 2023 mining code, Finance Minister Alousséni Sanou told Mali’s public broadcaster ORTM on Monday.