Mali Renews Barrick Gold’s Loulo-Gounkoto Mining License for 10 Years: A New Chapter for West African Gold

The government of Mali has formally renewed the mining license for the Loulo-Gounkoto gold complex, operated by Barrick Gold, for an additional ten years. This decision, announced by the Malian authorities in February 2026, resolves a protracted two-year dispute stemming from the country’s revised 2023 mining code. The renewal is contingent on a new feasibility study that outlines a significantly extended mine life, projecting the site to remain a cornerstone of Mali’s economy and a major contributor to global gold production for decades to come.

Introduction: The Strategic Importance of the Loulo-Gounkoto Complex

The Loulo-Gounkoto mining complex, located in western Mali near the border with Senegal, is not just another gold mine; it is a national asset and a global benchmark for high-grade, low-cost production. For Mali, consistently ranked among Africa’s top three gold producers, the complex represents the largest single source of mineral revenue, employment, and foreign investment. For Barrick Gold, the world’s second-largest gold producer, Loulo-Gounkoto has been its flagship operation, consistently delivering exceptional margins and production volumes. The ten-year license renewal, therefore, is a pivotal event with profound implications for Mali’s fiscal stability, Barrick’s production profile, and the geopolitics of mining investment in West Africa.

Key Points at a Glance

• License Renewal: Mali’s government has granted a 10-year extension to Barrick Gold’s exploitation permit for the Loulo-Gounkoto gold complex.
• Dispute Resolution: This follows the amicable settlement of a two-year diplomatic and legal conflict sparked by Mali’s 2023 mining code reforms, which increased state equity and tax burdens.
• New Feasibility Study: The renewal is based on a fresh technical study confirming substantial remaining reserves, supporting 16 years of underground mining and 6 years of open-pit operations.
• Production Forecast: Gross annual production is estimated at 420,920 ounces, maintaining the mine’s status as a tier-one asset.
• Economic Impact: The complex contributed nearly $900 million to Mali’s economy in 2024 through direct and indirect means, including taxes, royalties, wages, and local procurement.
• Strategic Shift: The settlement model—renegotiation over arbitration—sets a potential precedent for resolving similar disputes between resource-rich African nations and major mining corporations.

Background: The 2023 Mining Code and the Spark of Conflict

Mali’s Legislative Overhaul

In 2023, Mali’s transitional government enacted a sweeping revision of its mining code. The primary objectives were to increase the state’s share of mining revenues, enhance local value addition, and assert greater sovereign control over the nation’s mineral wealth. Key provisions included:

• Increased State Equity: The government’s free-carried interest (a stake acquired without cost) in new mining projects was raised from 10% to 20%, with an option to purchase an additional 10%.
• Higher Royalties and Taxes: Royalty rates on gold were increased, and a new “super-profit” tax was introduced for periods of exceptionally high commodity prices.
• Local Content Mandates: Stricter requirements for local hiring, procurement of goods and services, and community development investments.

While framed as a move towards equitable resource nationalism, the code created significant uncertainty for existing investors like Barrick, whose 2012 convention with the state governed the Loulo-Gounkoto project. The government asserted the new code applied universally, while Barrick argued its existing legal protections were being violated.

The Loulo-Gounkoto Complex: A Pillar of Production

Loulo-Gounkoto is a combined operation comprising the Loulo (open-pit and underground) and Gounkoto (open-pit) deposits. Acquired by Barrick through its 2019 merger with Randgold Resources, the complex has a history of consistent production and exploration success. Prior to the dispute, it was renowned for its exceptionally high-grade ore, which translated into industry-leading all-in sustaining costs (AISC) and robust profitability, even during periods of lower gold prices.

Analysis: The Path to Resolution and the New Terms

The Two-Year Standoff and Negotiation

The conflict escalated in 2024 when Mali revoked certain operational permits and Barrick launched an arbitration case against the state at the World Bank’s International Centre for Settlement of Investment Disputes (ICSID). The standoff threatened to shut down the mine, jeopardizing thousands of jobs and a critical revenue stream for the fragile Malian state. After extensive negotiations brokered through diplomatic channels, a breakthrough was announced in November 2025. The settlement involved mutual concessions:

• Barrick’s Concessions: Agreed to accept the application of the new 2023 mining code principles to its existing Loulo-Gounkoto convention, including increased state participation and revised fiscal terms.
• Mali’s Concessions: Agreed to formally renew the exploitation permit, withdraw all administrative and legal actions against Barrick and its local subsidiaries, release any detained company personnel, and restore full operational control to Barrick.

This negotiated settlement, avoiding a final arbitration award, was seen as a pragmatic win-win. Mali secured a framework to apply its new code to its most valuable asset, while Barrick secured long-term operational certainty and the ability to continue exploiting one of the world’s premier gold deposits.

The New Feasibility Study and Extended Mine Life

The cornerstone of the renewed license is a new, independent feasibility study mandated by the terms of the settlement. This study, conducted to international standards (likely NI 43-101 or JORC), reassessed the complex’s mineral resources and reserves. Its findings are transformative for the asset’s valuation:

• Extended Production Profile: The study confirms economically viable reserves sufficient for six years of open-pit mining and a substantial 16 years of underground mining. This represents a significant extension from previous forecasts, largely driven by successful underground exploration and resource conversion.
• Stable Annual Output: The average gross annual production is estimated at 420,920 ounces. While slightly lower than some historic peak years, this output level is achieved from a larger, more sustainable resource base with a longer overall mine life.
• Cost and Grade Assumptions: While not fully detailed in the announcement, the continuation of high-grade underground ore suggests the complex will maintain its position as a low-cost producer, crucial for profitability under the new, higher-tax regime.

This technical validation was the key condition for the state to grant the decade-long renewal, proving the asset’s long-term value to all stakeholders.

Practical Advice: What This Means for Stakeholders

For Investors and the Mining Sector

This event provides critical clarity on several fronts:

• Barrick Gold’s Production Guidance: Investors can now model Loulo-Gounkoto’s contribution with greater certainty for the next 22 years (6+16). This will be a central pillar in Barrick’s long-term production and cash flow forecasts, supporting its dividend policy and share valuation.
• Risk Re-pricing for West Africa: The successful renegotiation, rather than expropriation, may slightly reduce the political risk premium attached to other major mines in Mali and neighboring countries with similar resource nationalism trends (e.g., Burkina Faso, Guinea). However, it confirms that the “rules of the game” can change mid-stream.
• M&A and Investment Signals: The resolution removes a major overhang on Barrick’s stock. Furthermore, it signals that deep, technically robust resources can justify renegotiated terms, potentially encouraging further greenfield and brownfield investment in Mali’s vast underexplored gold belts.

For the Malian Government and Economy

• Fiscal Revenue Certainty: The renewed license locks in a long-term stream of revenue from a reliable, high-value asset under the more favorable 2023 code terms. This is vital for national budgeting and development projects.
• Local Economic Development: The extended mine life secures thousands of direct jobs (both skilled and unskilled) and tens of thousands of indirect jobs in supply chains, services, and communities for another generation. The renewed focus on local content in the new convention should deepen these linkages.
• Sovereign Credibility: Handling a major investor dispute through negotiation rather than confiscation enhances Mali’s reputation as a partner that honors agreements in spirit, even after renegotiation. This can attract other major miners wary of outright expropriation.

For Local Communities and Environmental Stewardship

• Community Investment: Barrick’s social investment programs (infrastructure, health, education) tied to the mine will continue for decades, providing stable development support to the Kayes region.
• Environmental Management: A 22-year projected lifespan necessitates a renewed, rigorous focus on environmental monitoring and mine closure planning. The new feasibility study should include updated environmental impact assessments and closure cost estimates, which are critical for regulatory compliance and sustainable operation.
• Social License to Operate: Maintaining trust with local communities is paramount for an operation of this duration. Continued engagement on land access, water use, and cultural heritage will be essential.

FAQ: Addressing Common Questions

Q1: Does this mean Mali has fully nationalized the Loulo mine?

No. The mine remains operated and majority-owned by Barrick Gold. The key change is that Mali’s state equity stake, as per the 2023 code, is now applied to the Loulo-Gounkoto project. Barrick retains operational control and the majority economic interest. This is a revision of the fiscal and ownership terms, not nationalization.

Q2: What happened to the arbitration case at the World Bank (ICSID)?

As part of the November 2025 settlement agreement, Barrick formally withdrew its ICSID arbitration case against the Republic of Mali. In return, Mali withdrew all administrative and legal proceedings against Barrick and its affiliates related to the dispute. The matter is now fully resolved between the parties.

Q3: How does this affect the price of gold globally?

The direct impact is minimal. Loulo-Gounkoto’s annual production of ~420,000 ounces is significant but represents less than 1.5% of global mine supply. However, the precedent set by the resolution—avoiding a supply shock from a major African mine—provides stability to the supply side. The more significant effect is on investor perception of risk in West African gold mining, which can influence investment flows and future production capacity.

Q4: Are there any remaining legal or regulatory risks for Barrick?

The primary dispute has been settled through the renewed license and amended convention. The major legal risk has been mitigated. Remaining risks are operational and regulatory in the normal course: compliance with Malian environmental, labor, and tax laws; potential future changes to the mining code (though the precedent of renegotiation may make abrupt changes less likely); and the inherent risks of underground mining. The new 10-year permit provides a stable regulatory framework under current laws.

Q5: How does this renewal align with Barrick’s global strategy?

It aligns perfectly. Barrick has consistently focused on maintaining and extending the lives of its tier-one assets—those with the highest grades, lowest costs, and longest mine lives. Loulo-Gounkoto is a textbook example. Securing 22+ years of production from this complex de-risks Barrick’s portfolio, supports its “all-in” growth strategy, and provides a stable cash generator to fund exploration, dividends, and potential acquisitions elsewhere.

Conclusion: A Model for Managed Resource Nationalism?

The renewal of Barrick Gold’s Loulo-Gounkoto license marks the successful conclusion of a tense chapter in Mali’s mining history. It demonstrates that even in an era of heightened resource nationalism, where states seek a greater slice of the mining pie, solutions can be found through negotiation rather than confrontation. For Mali, the deal delivers on the core promise of the 2023 mining code—increased state participation and revenue—from its most valuable asset, while preserving the operational expertise and investment capacity of a world-class miner. For Barrick, it secures the long-term future of a cornerstone asset, providing certainty for its investors and workforce.

The broader lesson for the global mining industry is profound. The era of static, long-term mining conventions may be evolving. Companies operating in jurisdictions undergoing legislative change must be prepared for renegotiation, but also recognize that proven, high-grade assets have immense leverage. The Loulo-Gounkoto settlement becomes a case study in how to navigate such transitions: through technical validation (the new feasibility study), mutual recognition of core interests (Mali’s sovereignty, Barrick’s economics), and a willingness to find a middle ground that allows the project—and its benefits to all—to continue for decades to come. The gold will continue to flow from the Kayes region, now under a revised, but enduring, partnership.

Sources and Further Reading

• Official Statement from the Presidency of the Republic of Mali (February 2026) on the Loulo-Gounkoto license renewal.
• Barrick Gold Corporation Press Releases (November 2025 & February 2026) regarding the settlement with Mali and the new feasibility study results.
• Republic of Mali, Ministry of Mines and Energy. (2023). Revised Mining Code of the Republic of Mali (Law No. 2023-XXX/ AN-RM).
• Barrick Gold Corporation. (2024). Annual Information Form & Technical Reports on the Loulo-Gounkoto Complex (NI 43-101 compliant).
• World Bank Group. (2025). Case records: Barrick Gold Corporation v. Republic of Mali (ICSID Case No. ARB/XX/XX) – Notice of Discontinuance.
• Industry analyses from major financial institutions (e.g., RBC Capital Markets, Goldman Sachs) on the implications of the Mali-Barrick settlement for West African mining jurisdictions.
• Reports from the Extractive Industries Transparency Initiative (EITI) on Mali’s revenue disclosures from the mining sector.