Mali’s industrial gold output fell sharply in 2025, declining 22.9% amid a prolonged suspension of Barrick Mining, one of the world’s largest gold producers, according to provisional data from the country’s mines ministry. Industrial production dropped to 42.2 metric tons from 54.8 tons in 2024, well below the 66.5-ton peak recorded in 2023. The downturn reflects the impact of a two-year standoff between the government and Barrick following the introduction of a new mining code in 2023, aimed at capturing greater value from the sector.
Barrick’s flagship Loulo-Gounkoto complex, Mali’s largest gold mine, was placed under provisional administration before reopening in July. However, persistent logistical challenges and regulatory uncertainty limited output to just 5.5 tons in 2025, a steep decline from 22.5 tons a year earlier. The disruption offset gains from other operators, highlighting the vulnerability of Mali’s gold sector to regulatory disputes.
In Barrick’s absence at full capacity, B2Gold, a Canadian company that operates the Fekola mine, emerged as Mali’s top producer with 17.5 tons. Allied Gold, supported by its new Korali-Sud mine and existing Sadiola operations, produced 9.58 tons, ranking second. When combined with artisanal output, which remained stable at six tons, Mali’s total gold production stood at 48.2 tons, representing a 22.7% shortfall relative to government forecasts.
The economic implications of this decline are significant. Gold accounts for roughly 70% of Mali’s export earnings, making the sector a major contributor to foreign exchange inflows, fiscal revenue, and local employment. A sudden drop in production strains government finances, limits export revenue, and can exacerbate pressure on the local currency. The reduced output may also affect Mali’s position as one of Africa’s largest gold producers, potentially impacting investor confidence in the country’s mining sector.
The dispute with Barrick underscores the challenges of balancing regulatory reform with investor confidence. Mali’s 2023 mining code aimed to increase state participation in the sector and secure greater value for the nation. While the reforms enabled the government to recover 761 billion CFA francs ($1.2 billion) in arrears from mining companies, they also provoked resistance from major operators, leading to operational disruptions. Analysts argue that prolonged standoffs can deter foreign investment, slow sector growth, and undermine efforts to modernise the mining industry.
For companies like B2Gold and Allied Gold, the regulatory vacuum created opportunities to increase output and expand market share. However, reliance on a small number of operators also exposes the sector to concentration risk, where production shocks at a single mine can have outsized effects on national output and export earnings. Mali’s artisanal miners, producing six tons in 2025, continue to play a complementary role but cannot compensate for shortfalls in industrial production.
The government now faces the challenge of rebuilding confidence with both domestic and international stakeholders. Ensuring clear regulatory frameworks, predictable licensing procedures, and operational stability will be key to attracting investment while achieving the broader goal of capturing more value from natural resources. Strengthening infrastructure, logistics, and security at mining sites will also be critical to prevent further output disruptions.
Looking ahead, Mali’s gold sector is likely to recover gradually if major mines maintain stable operations and new entrants expand production. However, any further disputes or administrative bottlenecks could prolong the shortfall, affecting government revenue, local employment, and the country’s foreign exchange position. For West Africa’s mining-dependent economies, Mali’s experience serves as a cautionary tale of the trade-offs between regulatory reform and operational continuity.
While Mali’s new mining code represents an effort to ensure greater national benefit from mineral wealth, the 2025 production slump illustrates the fragility of the sector in the face of regulatory disputes. With Barrick’s operations now stabilising and other producers ramping up output, the outlook is cautiously positive, but the government must balance reform ambitions with strategies to maintain investor confidence and sustain economic stability.
