Malian Gold Output Falls 23% As New Mining Law Pressures Producers

Mali's changes to the mining code are starting to impact its commodity production. After the military-led government implemented changes that sought to increase royalties from 20% to 35%, gold production decreased by 23% in 2024, reaching 51 metric tons.

Reuters reported that, per the country's ministry document, the number excludes Barrick Gold's GOLD December output. Following a tax dispute with the company, the situation escalated, as the government detained four employees.

Furthermore, they detained four of its employees, issued an arrest warrant for CEO Mark Bristow, and seized about three metric tons of gold worth around $245 million. Barrick responded by temporarily suspending its Loulo-Gounkoto operation, which is the largest in the country and produces over half a million ounces annually.

"We're making progress, not as fast as I would expect," Bristow recently said, clarifying that Barrick remains committed to resolving the situation.

Toronto-based leading global gold producer recently announced a significant boost in its reserves. Following a new assessment of Pakistan's Reko Diq project, its global gold reserves increased by 17.4 million ounces, or 23%.

For comparison, its Malian gold reserves include 7.2 million ounces of proven and probable reserves, with an addition of 10 million measured and indicated and 1.2 million inferred.

Australian Resolute Mining RMGGY is another producer with a significant interest in the region, whose 2024 output in Mali attributed to 7.2 tons. Its Syama mine is one of the company's two primary assets, contributing nearly 60% of its total gold output in 2023.

However, the government's tax settlement demand of $162 million and the detention of its CEO, Terry Holohan, and two other senior officials caused a trading halt after shares cratered 40%. After being released and taking a two-month personal leave, Holohan resigned.

The only major producer who has found common ground with the Malian government so far is B2 Gold BTG, which signed a new agreement last September. The Canadian company produced 13.7 tons in Mali in 2024 from its low-cost Fekola mine and has set an ambitious target of reaching one million ounces in 2025—mainly from improvements at the Fekola but also from the start of production at the Goose project in southwestern Nunavut, Canada.

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