Mali detains Barrick Gold employees as disputes over mining revenues intensify

By bne IntelliNews November 27, 2024

Four employees of Barrick Gold have been detained by Mali's military-led government amid escalating tensions between Western mining companies and the state over revenue disputes.

The arrests, confirmed by the Canadian gold mining giant, involve personnel from the Loulo-Gounkoto mining complex—one of Mali's largest and most significant gold operations. While specific charges have not been disclosed, Barrick has stated it “refutes these charges” and is committed to negotiating with authorities to secure the employees’ release and protect the mine’s future.

“Our attempts to find a mutually acceptable resolution have so far been unsuccessful, but we remain committed to engage with the government in order to resolve all the claims levied against the company and its employees and secure the early release of our unjustly imprisoned colleagues,” President and CEO Mark Bristow said, in a press release, noting that the NYSE-listed company had been working to finalise a Memorandum of Agreement to define its partnership with the government since September.

The detentions highlight Mali's increasing efforts to exert control over its mineral wealth. Since a 2020 coup, the junta-led administration has sought greater revenue from the mining sector, including implementing a new code last year that aims to formalise a larger state share of mining profits. Barrick’s Loulo-Gounkoto mine faces potential reclamation by the state when its concession expires in 2026, placing further strain on relations.

Barrick’s predicament follows similar actions against Australia-based Resolute Mining earlier in November. After some of its executives were detained, Resolute paid $160mn to settle a tax dispute. Similarly, Mali is demanding $500mn in back taxes from Barrick, a claim the company contests, according to Reuters.

The military government has also renegotiated terms with several major mining companies. Allied Gold has revised agreements for its operations in Mali, while firms such as AngloGold Ashanti and B2Gold have faced mounting pressure to adjust contracts to align with the junta’s resource-management agenda.

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