Gold Showdown: How Barrick Won Back Africa's Richest Mine

Barrick just pulled off a major power play in Mali, reclaiming control of the Loulo-Gounkoto gold complex after months of high-stakes brinkmanship with the country’s military government. Here’s what went down and why it matters.

The Deal

The Canadian mining giant is writing a $430 million check to settle the dispute—144 billion CFA francs upfront within six days, with another 50 billion covered through VAT credits. (Another 50 billion was already paid in 2023.) In return, Mali is dropping all charges, ending state control of the mine, releasing four detained Barrick employees, and renewing the Loulo mining permit for another decade.

What Led to the Standoff

This whole mess kicked off in January when Mali’s military regime halted gold exports, locked up senior Barrick staff, and seized tonnes of gold from the site. The government’s real gripe? Barrick refused to accept Mali’s 2023 mining code, which tightened rules on foreign operators. A local court then installed a state-appointed manager to run the operation, effectively freezing Barrick out of a mine it had controlled through joint venture.

Production only limped back online in late October after separate negotiations with local contractors.

The Bigger Picture: Barrick’s Rough Year

This settlement comes at a critical moment for Barrick. The company’s already under the microscope thanks to activist investor Elliott Management, which just loaded up on at least $700 million worth of stock. Elliott doesn’t do quiet—it’s known for forcing major corporate shake-ups in mining.

Barrick’s had a rough stretch: production’s down, costs are up, and despite record gold prices, the company’s lagging behind peers. Add in the Reko Diq debacle in Pakistan and internal chaos (longtime CEO Mark Bristow abruptly left in September after a messy power struggle with board chair John Thornton), and you’ve got a company that needs wins.

Interim CEO Mark Hill is now pushing through a major restructuring: consolidating Pueblo Viejo into North America ops, merging Latin America and Asia Pacific divisions, and tightening focus on Nevada mines (a crown jewel that’s had some safety hiccups this year).

What’s Next?

This Mali victory could be the steady hand Barrick needs. But with its stock trading at lower valuations than rivals, speculation’s already swirling about whether the company could split into separate regional entities or become an acquisition target. The market will be watching whether Hill can actually execute his turnaround while Elliott watches from the sidelines.