Four employees from Barrick Gold’s Loulo-Gounkoto mining complex in Mali have been detained as the military-led government intensifies efforts to impose additional taxes on mining companies. The government claims Barrick owes $500 million in unpaid taxes, while the company disputes these charges and seeks a resolution to ensure its operations’ sustainability.
Barrick CEO Mark Bristow stated the company has been negotiating since September to finalise an agreement defining the government’s share of economic benefits from the mine. No resolution has been reached despite ongoing talks, and the employees remain detained. Bristow reaffirmed Barrick’s commitment to resolving the claims and securing their release.
Rising Tensions in Mali’s Mining Sector
This case follows similar detentions in Mali’s mining sector. Recently, Resolute Mining paid $160 million to settle tax claims, leading to the release of its CEO and staff. The Malian government, under military rule since 2020, has increasingly targeted foreign mining firms for revenue, with its economy strained by sanctions and lost Western aid.
The escalating tensions risk deterring investors from Mali’s lucrative gold sector. Barrick’s shares fell 0.7% following the news, reflecting investor concerns about operating in politically unstable regions. How this dispute resolves may shape the future of Mali’s mining industry and foreign investment prospects.
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