Latest news with #IssaAguibouDiallo
Canada Standard
3 days ago
- Business
- Canada Standard
Canadian mining giant loses control of African site
A court in Mali has transferred the management of Barricks biggest gold sites to a state-appointed provisional administrator Mali has temporarily stripped Canadian firm Barrick of control over the West African country's largest gold mining operations, amid an escalating dispute over alleged unpaid taxes and royalties. On Monday, a court in Bamako ruled that the management of the Loulo-Gounkoto gold complex in western Mali be handed over to a state-appointed provisional administrator for six months. Bamako Commercial Tribunal Judge Issa Aguibou Diallo announced that the mine will be managed during the period by Soumana Makadji, a former health minister and professional accountant. The decision follows the government's closure of Barrick's offices in the capital and warnings to take over the site, which has been inactive for months. Mali's military authorities have defended the move as necessary to maintain operations and protect the country's economic interests. Barrick, however, has denounced the court order as illegal and a breach of its contractual agreements. "This ruling follows actions by the Malian government to block gold exports and seize gold stocks belonging to Barrick's subsidiaries - measures Barrick believes to be unjustified and which led to the temporary suspension of operations," the mining giant said in astatement. READ MORE: Canadian gold miner seeks mediation in African dispute The Loulo-Gounkoto mines are 80% owned by Barrick and 20% by the Malian government. The company suspended operations at the mine in January after the authorities seized three tons of gold from the mines and blocked its exports over unpaid revenues - a claim Barrick denies. In February, Barrick said it had reached a settlement deal to reopen the mine, following an earlier $85 million payment made to the government last October. However, talks between the two sides recentlycollapsedafter Mali demanded a lump-sum tax payment of 125 billion CFA francs ($197 million), while Barrick pushed for a structured repayment plan. Tensions have escalated since late last year over the detention of four Barrick employees, who face charges of money laundering and financing terrorism - accusations the company has rejected as false. The mining giant has filed a case against Mali with the World Bank's arbitration tribunal. "While the company has made a number of good faith concessions in the spirit of partnership, it cannot accept terms that would compromise the legal integrity or long-term viability of the operations," Barrick said on Monday. The former French colony introduced a new mining code in 2023, allowing the state to claim up to a 30% stake in new projects as part of efforts to boost revenue amid rising gold prices. The authorities in Bamako have expressed hope that a recentdealwith Russia's Yadran Group to establish a gold refinery - 62% owned by Mali - will help boost national revenues from bullion production. (
Canada Standard
3 days ago
- Business
- Canada Standard
Canadian mining giant loses operational control in African state
A court in Mali has transferred the management of Barricks biggest gold sites to a state-appointed provisional administrator Mali has temporarily stripped Canadian firm Barrick of control over the West African country's largest gold mining operations, amid an escalating dispute over alleged unpaid taxes and royalties. On Monday, a court in Bamako ruled that the management of the Loulo-Gounkoto gold complex in western Mali be handed over to a state-appointed provisional administrator for six months. Bamako Commercial Tribunal Judge Issa Aguibou Diallo announced that the mine will be managed during the period by Soumana Makadji, a former health minister and professional accountant. The decision follows the government's closure of Barrick's offices in the capital and warnings to take over the site, which has been inactive for months. Mali's military authorities have defended the move as necessary to maintain operations and protect the country's economic interests. Barrick, however, has denounced the court order as illegal and a breach of its contractual agreements. "This ruling follows actions by the Malian government to block gold exports and seize gold stocks belonging to Barrick's subsidiaries - measures Barrick believes to be unjustified and which led to the temporary suspension of operations," the mining giant said in astatement. READ MORE: Canadian gold miner seeks mediation in African dispute The Loulo-Gounkoto mines are 80% owned by Barrick and 20% by the Malian government. The company suspended operations at the mine in January after the authorities seized three tons of gold from the mines and blocked its exports over unpaid revenues - a claim Barrick denies. In February, Barrick said it had reached a settlement deal to reopen the mine, following an earlier $85 million payment made to the government last October. However, talks between the two sides recentlycollapsedafter Mali demanded a lump-sum tax payment of 125 billion CFA francs ($197 million), while Barrick pushed for a structured repayment plan. Tensions have escalated since late last year over the detention of four Barrick employees, who face charges of money laundering and financing terrorism - accusations the company has rejected as false. The mining giant has filed a case against Mali with the World Bank's arbitration tribunal. "While the company has made a number of good faith concessions in the spirit of partnership, it cannot accept terms that would compromise the legal integrity or long-term viability of the operations," Barrick said on Monday. The former French colony introduced a new mining code in 2023, allowing the state to claim up to a 30% stake in new projects as part of efforts to boost revenue amid rising gold prices. The authorities in Bamako have expressed hope that a recentdealwith Russia's Yadran Group to establish a gold refinery - 62% owned by Mali - will help boost national revenues from bullion production. (
Business Insider
4 days ago
- Business
- Business Insider
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. DON'T MISS THIS: 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.
4 days ago
- Business
Mali takes control of Canadian-owned Barrick Gold mine over tax dispute
BAMAKO, Mali -- A judge in Mali on Monday ordered Barrick Gold's Loulo-Gounkoto gold complex to be placed under provisional administration for six months in an ongoing dispute between the Canadian mining company and the West African nation's military government over unpaid taxes. Zoumana Makadji, an accountant and a former Malian minister of health has been appointed as the company's provisional administrator within 15 days, Judge Issa Aguibou Diallo said in a statement to Barrick's lawyers. Barrick's website said the company is Africa's largest gold producer through its Loulo-Gounkoto complex and Kibali mine located in Congo. Barrick Gold has been in conflict with Mali's military rulers over alleged unpaid taxes and unfair contracts with past governments. The dispute culminated in an arrest warrant in December for Barrick CEO Mark Bristow and the company's offer to pay $370 million to the government. 'While Barrick's subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator,' Barrick said in a statement on its website following the ruling. In December, Barrick submitted a request for arbitration to the International Center for Settlement of Investment Disputes to address disagreements with Mali concerning the Loulo-Gounkoto complex, where the mines are located. Despite this, the government took a series of escalatory measures, including the arrest of Barrick Gold employees, who remain detained, and the suspension of gold exports. Barrick, which has been present in Mali for three decades, emphasized that the arbitration process was still ongoing and reaffirmed its commitment to 'engaging with the government of Mali, in parallel, to identify a constructive, mutually acceptable solution.' The company's statement on Monday added: "The ongoing detention of (our) employees — who remain unjustly imprisoned and used as leverage in this process — is deeply concerning and inconsistent with the trust, transparency and accountability required for a genuine long-term partnership. 'To date, no credible rationale has been presented to justify this detention and the Government's position, and the Government's ever-increasing demands have lacked both factual and legal foundation.' Mali is one of Africa's leading gold producers, but it has struggled for years with jihadi violence and high levels of poverty and hunger. The military seized power in 2020, and the government has placed foreign mining companies under growing pressure as it seeks to shore up revenues. In November, in Bamako. They were released after the company paid $80 million to Malian authorities to resolve a tax dispute and promised to pay a further $80 million in the coming months.
San Francisco Chronicle
4 days ago
- Business
- San Francisco Chronicle
Mali takes control of Canadian-owned Barrick Gold mine over tax dispute
BAMAKO, Mali (AP) — A judge in Mali on Monday ordered Barrick Gold's Loulo-Gounkoto gold complex to be placed under provisional administration for six months in an ongoing dispute between the Canadian mining company and the West African nation's military government over unpaid taxes. Zoumana Makadji, an accountant and a former Malian minister of health has been appointed as the company's provisional administrator within 15 days, Judge Issa Aguibou Diallo said in a statement to Barrick's lawyers. Barrick's website said the company is Africa's largest gold producer through its Loulo-Gounkoto complex and Kibali mine located in Congo. Barrick Gold has been in conflict with Mali's military rulers over alleged unpaid taxes and unfair contracts with past governments. The dispute culminated in an arrest warrant in December for Barrick CEO Mark Bristow and the company's offer to pay $370 million to the government. 'While Barrick's subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator,' Barrick said in a statement on its website following the ruling. In December, Barrick submitted a request for arbitration to the International Center for Settlement of Investment Disputes to address disagreements with Mali concerning the Loulo-Gounkoto complex, where the mines are located. Despite this, the government took a series of escalatory measures, including the arrest of Barrick Gold employees, who remain detained, and the suspension of gold exports. Barrick, which has been present in Mali for three decades, emphasized that the arbitration process was still ongoing and reaffirmed its commitment to 'engaging with the government of Mali, in parallel, to identify a constructive, mutually acceptable solution.' The company's statement on Monday added: "The ongoing detention of (our) employees — who remain unjustly imprisoned and used as leverage in this process — is deeply concerning and inconsistent with the trust, transparency and accountability required for a genuine long-term partnership. 'To date, no credible rationale has been presented to justify this detention and the Government's position, and the Government's ever-increasing demands have lacked both factual and legal foundation.' Mali is one of Africa's leading gold producers, but it has struggled for years with jihadi violence and high levels of poverty and hunger. The military seized power in 2020, and the government has placed foreign mining companies under growing pressure as it seeks to shore up revenues. In November, the CEO of Australian company Resolute Mining and two employees were arrested in Bamako. They were released after the company paid $80 million to Malian authorities to resolve a tax dispute and promised to pay a further $80 million in the coming months.
