Mali to take over Canadian-owned Barrick Gold mine over tax dispute
A Malian court has ordered Barrick Gold's Loulo-Gounkoto gold mining complex to be placed under provisional administration for six months, as tensions escalate between the Canadian mining giant and Mali's military-led government over alleged unpaid taxes.
A Malian court has placed Barrick Gold's Loulo-Gounkoto mining complex under provisional administration for six months.
The tensions between Barrick Gold and Mali's government stem from allegations of unpaid taxes and inequitable contracts.
Barrick has requested international arbitration to resolve disputes while Mali increases measures such as employee detentions.
On Monday, Judge Issa Aguibou Diallo instructed that Zoumana Makadji, a chartered accountant and former Malian Minister of Health, be appointed as the provisional administrator within 15 days. This move effectively shifts operational control of one of Africa's most valuable mining assets to an external authority.
Dispute over taxation and past agreements
Barrick Gold, Africa's largest gold producer, has found itself at odds with Malian authorities, who accuse the company of owing significant unpaid taxes and of benefiting from lopsided contracts signed under previous administrations. In December, tensions peaked with the issuance of an arrest warrant for Barrick CEO Mark Bristow and the company's offer of a $370 million settlement to the government.
" While Barrick's subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator," the company confirmed in a statement on its website.
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International arbitration and escalations
Barrick has since submitted an arbitration request to the International Centre for Settlement of Investment Disputes (ICSID) to resolve its differences with Mali concerning the Loulo-Gounkoto complex. However, rather than awaiting arbitration outcomes, the Malian government intensified its actions by detaining several Barrick employees and halting gold exports.
The company, which has operated in Mali for three decades, insists it is still open to dialogue with authorities, stating it remains committed to "engaging with the government of Mali, in parallel, to identify a constructive, mutually acceptable solution."
Employee detentions and rising pressure
Barrick strongly condemned the ongoing detention of its employees, branding it "deeply concerning and inconsistent with the trust, transparency and accountability required for a genuine long-term partnership." The company further criticised the Malian government's conduct, noting that "no credible rationale has been presented to justify this detention," and accused the government of using the detained staff as leverage in ongoing negotiations.
Wider context: Mali's mining sector under strain
Mali, a top gold producer on the African continent, is grappling with internal security issues and economic challenges. Since the military takeover in 2020, the transitional government has exerted increasing pressure on foreign mining operators to boost revenue collection.
In a related case last November, the CEO of Australia-based Resolute Mining and two staff members were arrested in Bamako. Their release followed the payment of $80 million to the Malian government, with a further $80 million pledged.
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