Barrick Drops Mali’s Loulo-Gounkoto From 2025 output Forecast Amid Dispute

Canadian mining giant Barrick Gold has removed the Loulo‑Gounkoto gold complex in Mali from its 2025 production forecast, according to sources familiar with the matter. The decision follows a months-long standoff with Mali’s transitional military government over new mining laws, tax frameworks, and increased state involvement in the sector.

A Strategic Withdrawal

Loulo‑Gounkoto, Barrick’s flagship asset in West Africa, has been offline since early 2024 after the Malian government blocked gold exports, seized several tons of stockpiled gold, and detained company personnel. The dispute stems from regulatory shifts that require new mining agreements and greater state ownership, which Barrick contests under its existing legal framework.

The exclusion of the complex from 2025 forecasts could slash Barrick’s global gold output by up to 250,000 ounces about 14% of its annual production. The company has triggered international arbitration and is fighting a local court decision that may allow the government to appoint a provisional administrator to run the mine.Read more here

Ripple Effects on Local SMMEs

The shutdown of operations at Loulo‑Gounkoto is not only a blow to Barrick’s output but also a severe disruption for local SMMEs that depend on the mining sector. These include service providers in transportation, catering, construction, mechanical repairs, and safety equipment. Many of these enterprises operate on short-term contracts and rely heavily on predictable mine activity to remain solvent.

“When a major player like Barrick halts operations, the trickle-down effect is immediate,” says a local mining consultant in Bamako. “Dozens of contractors are either downsizing or suspending work. Local livelihoods are directly threatened.”

Additionally, procurement from local suppliers has slowed significantly. Barrick, like many large mining firms, had implemented local content initiatives designed to boost participation of Malian businesses in its supply chain. The current halt risks undoing years of progress in developing a self-reliant ecosystem of indigenous mining services.

Wider Industry Concerns

This standoff signal broader instability across West Africa’s so-called “coup belt,” where military regimes are seeking to assert more control over extractive industries. While these governments aim to increase national revenues, the uncertainty deters foreign investment and undermines local economic activity.

For Barrick, the focus now shifts to sustaining output through its other operations in North America, Latin America, Tanzania, and Pakistan. But for many Malian SMMEs, the future is less certain. Without a swift resolution, their survival and that of local employment hangs in the balance.

As the legal and diplomatic battle unfolds, attention is on whether Mali and Barrick can strike a compromise that balances national interests with economic sustainability for all stakeholders.