Mali Dispute Forces Barrick Gold to Lay Off Hundreds
Bamako, Mali, Monday, 28 April 2025.
Barrick Gold is laying off contractors in Mali amidst a two-year dispute over mining rights and taxes, illustrating geopolitical challenges in resource-rich regions.
Overview of the Dispute
The ongoing conflict between Barrick Gold and Mali’s government stems from changes to the nation’s mining code introduced in 2023, which mandated that foreign mining entities cede a 35% stake to the state. Barrick Gold’s resistance to these regulations led to heightened tensions and operational challenges. As a response to non-compliance, Malian authorities seized approximately 3 metric tons of gold from Barrick in late 2024, compelling the company to suspend operations and consider international arbitration as a resolution strategy [3].
Impact on Operations and Finances
Barrick Gold’s operational struggles in Mali peaked when the company’s subcontractors began laying off hundreds of workers, citing the escalation in regulatory conflict as of April 25, 2025 [3]. These layoffs reflect the broader financial impact on Barrick, which reported a $200 million revenue loss and a $50 million impairment charge in the first quarter of 2025 due to diminished production at the Loulo-Gounkoto complex [3]. Production at the complex fell to 0.63 tons in January 2025 and dropped to zero in February, highlighting the severity of the situation [3].
Geopolitical and Financial Repercussions
The grievances extended into broader geopolitical concerns as Barrick’s unresolved issues risk delaying a $2 billion expansion project at Yanfolila, potentially reducing Mali’s annual gold production by 15% [3]. The aggressive stance taken by Mali’s government, which involved detaining employees and issuing arrest warrants for Barrick’s CEO, serves as a warning to investors about the risks of operating in regions with volatile regulatory frameworks [3]. As of late April 2025, Barrick’s stock had fallen nearly 15% year-to-date, a decline influenced by both the local disputes and global gold price volatility [3].
Future Prospects and Industry Implications
Barrick Gold’s challenges in Mali illustrate the growing trend of resource nationalism, where countries tighten control over their natural resources to secure more significant economic benefits. This dynamic poses substantial challenges for multinational companies navigating these complex regulatory landscapes, underscoring the importance of strategic adaptation [3]. Barrick’s pursuit of arbitration through the International Centre for Settlement of Investment Disputes (ICSID) highlights the broader implications for mining investors, signaling a need for heightened due diligence in similar markets [3].