By: African mining market

The Loulo-Gounkoto gold mine, Mali’s largest industrial mining site, remains at the center of a year-long dispute between Barrick Gold Corp. and the Malian government, exposing deeper tensions between the country’s sovereignty ambitions and foreign investors’ interests.

It was reported on 21st October 2025, that operations at the mine had resumed last week, following an agreement to restore payments to certain subcontractors. However, neither Barrick nor the Malian authorities have officially confirmed the restart, and the judicial administration overseeing the site has remained silent.

A spokesperson from the Ministry of Mines said the government has not been involved in managing Loulo-Gounkoto since a June 2025 court ruling. That decision placed the mine under the temporary administration of Soumana Makadji, a former health minister appointed for six months. Since then, the site has operated outside the normal governance framework, leaving legal and operational clarity unresolved.

In July, it was reported that authorities were considering selling one ton of gold stored at the site to fund a partial restart. An administrative source confirmed the plan, but no official timeline or concrete steps have been released.

The conflict stems from a government audit that demanded several hundred billion CFA francs from mining operators over alleged unpaid taxes and fees. While other companies reached settlements, Barrick contested the audit’s findings. The disagreement escalated after the state seized three tons of gold in January 2025 and arrested four Barrick employees, prompting the company to suspend operations and file a complaint before the International Centre for Settlement of Investment Disputes (ICSID) in December.

Loulo-Gounkoto is a cornerstone of Mali’s economy. In 2024, the mine produced over 720,000 ounces of gold, representing 43% of the country’s industrial output. Since its shutdown, Mali’s total industrial gold production has fallen 32% year-on-year as of end-August 2025.

The government sees the mine’s revival as crucial to stabilising revenues and reversing production declines. Yet, the lack of official communication and ongoing arbitration keep investors wary and the sector’s recovery uncertain.