The largest contractor at Barrick Mining’s Loulo-Gounkoto gold complex in Mali is closing operations in the country and laying off more than 600 employees, three sources said, in a fresh sign the Canadian miner is cutting exposure to higher-risk assets.
The move follows sluggish production and investment at the complex, the sources familiar with the matter said, after Barrick wrested back control from Malian administrators following a stand-off with the state over taxes and ownership.
Barrick does not plan to renew its deal with contractor Gounkoto Mining Services (GMS) in 2026, the first and second source said, adding it was unclear whether it would for 2027.
GMS, which managed extraction at the Gounkoto open-pit mine and the Yalea North mine, has issued termination letters to more than 600 workers, who are serving notice after mandatory medical exams, the two sources added. Neither mine has restarted production since Barrick regained control in December.
Spokespeople for Barrick and GMS’ parent company DTP did not immediately respond to requests for comment. A spokesperson for Mali’s mines ministry said it had no comment as this is an “internal problem”.
GMS’ departure, and the broader challenges sources say Loulo-Gounkoto faces, are unconnected to the security threats Mali is facing from insurgent groups, whose recent, large-scale attacks took place far from the complex.
Investment to pick up later in year
The Loulo-Gounkoto complex is one of the biggest gold mines in Africa. Mali’s gold output fell 23% last year, largely due to the mine’s suspension.
Barrick has lowered its 2026 production targets for the complex and did not include the Gounkoto mine in its plans for the year, the first source said.
The complex produced about 80,000 ounces of gold in the first quarter of 2026, and is projected to produce 103,000 ounces in the second quarter, the same source said – well below average output before the stand-off.
The figures still mark an increase from levels under provisional administration, data seen by Reuters show.
GMS’ withdrawal reflects weak investment and, in some cases, deteriorating infrastructure, the first source said, citing a mine shaft in poor condition due to a lack of spare parts for maintenance equipment.
Investment is expected to pick up later this year, the first and third sources said. Expatriate workers who left more than a year ago during the dispute are due to return in the second quarter, they added, without specifying their employers.
While Gounkoto and Yalea North remain idle, two other open-pit mines – Baboto and Gara West – have resumed operations, one source said. Baboto is operated by Corica and Gara West by Nieta Mining, both local companies.
(By Tiemoko Diallo and Portia Crowe; Editing by Maxwell Akalaare Adombila, Veronica Brown and Mark Potter)
