BAMAKO, Mali (AP) – A judge in Mali has ordered Canadian mining giant Barrick Gold to be placed under provisional administration for six months amid a dispute with the military government over alleged unpaid taxes. Judge Issa Aguibou Diallo, in a ruling announced on Monday, also appointed Zoumana Makadji, an accountant and former health minister of Mali, as the provisional administrator for the company.
The conflict between Barrick Gold and Mali's military authorities centers on accusations of unpaid taxes and the terms of contracts negotiated with previous governments. This tension escalated to the point where an arrest warrant was issued for Barrick’s CEO, Mark Bristow, back in December. In response, Barrick offered to pay $370 million to the Malian government to resolve the outstanding tax issues.
Although Barrick's subsidiaries retain legal ownership of the mine, the ruling determined that operational control would be transferred to an external administrator. Following the judge's announcement, Barrick issued a statement detailing the situation, affirming that while the legal ownership remains with them, the operational landscape is changing due to the court's decision.
In December, prior to the judge's ruling, Barrick initiated an arbitration request to the International Center for Settlement of Investment Disputes to solve disagreements regarding the Loulo-Gounkoto mining complex. Despite these efforts, the government implemented various escalatory measures, such as arresting Barrick Gold employees, who are still detained, and halting gold exports from the region.
Barrick Gold, which has operated in Mali for thirty years, reiterated its commitment to finding a constructive solution through ongoing negotiations with the Malian government. The company also expressed deep concern regarding the detention of its employees, describing it as unjust and a means of leveraging the situation. They criticized the Malian government's demands as lacking credible justification and as having no factual basis.
Mali is recognized as one of Africa's prominent gold producers, yet it has been grappling with challenges, including rampant jihadist violence and significant levels of poverty and food insecurity. Following a military coup in 2020, the government has been increasing pressure on foreign mining companies, vying for additional revenues to stabilize its weakened economy.
In a similar instance in November, the CEO of the Australian firm Resolute Mining, along with two employees, was arrested in Bamako. Their release came only after the company paid $80 million to Malian officials in a tax dispute, alongside a commitment to pay an additional $80 million in the near future.
Overall, the ongoing situation highlights the precarious environment for foreign investments in Mali's mining sector, compounded by political instability and fiscal pressures from the military government aimed at addressing national financial difficulties.
