Mali's Gold Industry Suffers Major Setback Following Barrick Conflict
Industrial gold production in Mali experienced a substantial decline last year, with output falling by 23 percent following a contentious dispute between the ruling military junta and Barrick Mining Corp. that forced the closure of the nation's largest mining operation.
Production Figures Reveal Significant Downturn
Production in the West African nation dropped to 42.2 tons in 2025, marking the second consecutive year of decline from a 2023 peak of 66.5 tons. The most significant contributor to this downturn was the dramatic slump at Barrick's Loulo-Gounkoto complex, where output plummeted to just 5.5 tons – representing only one-third of the previous year's production. Notably, most of that limited production occurred during the period when the mine was under provisional administration by government authorities.
Resolution Reached After Contentious Dispute
Mali and Barrick eventually reached an agreement in November to resolve the escalating conflict that had seen the government seize gold stocks and arrest mining staff. This prompted the Canadian firm to initiate international arbitration proceedings. The eventual settlement restored operational control to Barrick, with the company paying US$430 million to the Malian state as part of the resolution.
Production Leadership Shifts Among Mining Operations
With Loulo-Gounkoto failing to meet the mining ministry's original output projections, B2Gold's Fekola mine emerged as Mali's top producer in 2025, yielding 17.5 tons according to official government figures. Meanwhile, production from Allied Gold's Sadiola asset received a boost from ore extracted from the Korali Sud deposit, while Resolute Mining's Syama operation contributed 5.4 tons to the national total.
Root Causes of the Mining Conflict
The underlying conflict with Barrick originated from Mali's comprehensive 2023 mining code overhaul, which substantially increased the state's potential stake in mining projects from 20 percent to 35 percent. This legislative change created significant tension between international mining companies and the Malian government, ultimately leading to the production disruptions that impacted the nation's economic output.
The production decline represents a significant economic challenge for Mali, which relies heavily on gold exports as a primary source of foreign currency and government revenue. The resolution of the Barrick dispute provides some stability moving forward, but the substantial production drop highlights the vulnerability of resource-dependent economies to political and regulatory uncertainties.
