Canadian miner Barrick Gold has reached a new agreement with the Malian Government, potentially resolving a nearly two-year-old dispute over mining operations in the West African nation, reported Reuters, citing four people familiar with the matter.

Under the agreement, the company is set to pay Mali $438m in exchange for the release of detained employees, seized gold and the restart of operations at the Loulo-Gounkoto mine.

The deal, which has been signed by Barrick and awaits formal approval from Mali's Government, could be officially announced soon.

However, sources indicate that last-minute challenges could still emerge.

The dispute began in 2023 following the introduction of Mali's new mining code, which increased the government's stake in the gold mines.

CEOs of gold mining companies have noted that Mali’s new mining code needs to be reviewed to attract investment.

Barrick's agreement comes at a crucial time when gold prices are soaring, yet the company's share performance has not mirrored this increase.

Earlier this month, Barrick CEO Mark Bristow expressed to Reuters the mutual losses incurred from the mine's closure, with Mali missing out on significant revenue.

Barrick's contribution to Mali's treasury was projected to be around $550m (CFA Fr345.38bn) this year, had operations not been suspended.

The temporary halt at the Mali mine led Barrick to reduce its gold output forecast for the year to 3.2–3.5 million ounces (moz), down from 3.9moz last year and 4.1moz in 2023.

Military governments in Mali, Niger and Burkina Faso have been asserting greater control over their mineral wealth, with some Western miners reaching agreements swiftly, while others face prolonged negotiations.

It remains uncertain whether Barrick will proceed with its arbitration against Mali in light of the new agreement.

For 2024, Mali accounted for $1.07bn in revenues for Barrick, a 1% increase from the previous year.

Meanwhile, Mali's industrial gold production saw a 23% decline year-over-year in 2024.