Barrick Contractor Exiting Mali, Laying Off 600+ Employees: Sources

• GMS issued termination letters to more than 600 workers; neither the Gounkoto open-pit mine nor Yalea North mine has restarted production since Barrick regained control in December
• The complex produced only 80,000 ounces of gold in Q1 2026 with a projected 103,000 ounces for Q2, significantly below pre-dispute average output
• Weak investment and deteriorating infrastructure cited as reasons for GMS withdrawal, though investment is expected to increase later in 2026 with expatriate workers returning in Q2

Summary: Barrick Contractor Exits Mali Amid Production Challenges

Gounkoto Mining Services (GMS), the largest contractor at Barrick Mining's Loulo-Gounkoto gold complex in Mali, is terminating operations and laying off over 600 employees, signaling the Canadian miner's retreat from higher-risk assets.

Key Developments:

• Barrick will not renew its contract with GMS in 2026, with 2027 renewal uncertain
• GMS managed extraction at Gounkoto open-pit and Yalea North mines, neither operational since Barrick regained control in December
• The move follows a dispute with Mali's government over taxes and ownership that led to temporary state administration

Production Impact:

• Mali's gold output fell 23% last year, largely due to the mine's suspension
• Loulo-Gounkoto produced approximately 80,000 ounces in Q1 2026, with 103,000 ounces projected for Q2 2026—significantly below pre-dispute levels
• Barrick has lowered 2026 production targets and excluded Gounkoto mine from its plans

Operational Status:

• Gounkoto and Yalea North remain idle due to weak investment and deteriorating infrastructure, including mine shafts in poor condition from lack of maintenance parts
• Two other open-pit mines, Baboto (operated by Corica) and Gara West (operated by Nieta Mining), have resumed operations
• Investment expected to increase later in 2026, with expatriate workers returning in Q2

Market Context:

Loulo-Gounkoto is one of Africa's largest gold mines. The challenges are unrelated to Mali's security threats from insurgent groups. The exit underscores Barrick's strategy to reduce exposure to politically unstable regions despite the complex's significant production capacity.