Canadian mining team appends activities in Mali
Date
1/18/2025 6:55:48 AM
(MENAFN) Canadian mining giant Barrick Gold has announced a suspension of its operations in Mali due to a protracted dispute with the country’s military government over alleged unpaid taxes. The company claims that the Malian authorities have seized gold from its Loulo-Gounkoto complex and transferred it to a custodial bank, effectively blocking its sale and shipment. Reports indicate that around three metric tons of gold, valued at $245 million, were removed from the site and transported by helicopter.
The disagreement between Barrick and Mali dates back to 2023, when the government sought a new mining contract that would grant the state more control over its mineral resources. Mali is one of Africa's largest gold producers, with Barrick owning 80% of the Loulo and Gounkoto mines and the government holding a 20% stake. After a military coup in 2020, the government has pushed for higher state revenues from the mining sector, which has seen increased gold prices.
Despite a preliminary agreement to resolve the dispute in September, tensions have escalated, with Mali detaining senior Barrick executives and issuing an arrest warrant for CEO Mark Bristow on charges of money laundering, which the company denies. The Malian government has also demanded about $500 million in unpaid taxes from Barrick. In October, Barrick paid $85 million as part of ongoing negotiations.
This month, a Malian judge ordered the seizure of three tons of gold from Barrick, citing a $5.5 billion tax debt. Barrick claims the seizure violates agreed-upon dispute resolution mechanisms, prompting the suspension of operations while the company seeks a resolution. Additionally, Barrick has filed for arbitration with the International Center for the Settlement of Investment Disputes to resolve the matter.
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