BAMAKO, Mali — In a significant move, the Malian government has detained four senior personnel from a Canadian mining firm as part of an ongoing effort to press mining companies in the region to meet demands for additional tax payments. The military leadership in Mali is intensifying its actions against private sector firms as it seeks to bolster financial resources important for the country’s economy.
Barrick Gold reported on Tuesday that four of its employees working at the Loulo-Gounkoto mining complex have been formally charged and are now awaiting trial following their arrest on Monday evening. Although the firm has publicly declared that it disputes the charges, it did not disclose any specific details regarding the allegations. Mali’s officials have chosen not to comment on the matter at this time.
It is worth noting that these same Barrick Gold employees were previously detained for a short period in September. The company has expressed its intention to formalize an agreement with the Malian government that outlines the terms of its partnership, including the state’s share of the revenues generated from the mining operation and the regulatory framework governing the partnership.
In a recent statement, Barrick Gold’s CEO, Mark Bristow, indicated that despite ongoing efforts, the pursuit of a mutually beneficial resolution has yet to yield positive results. He emphasized the company’s commitment to engaging with the government to address all accusations against the firm and its staff, as well as to secure the release of its personnel who are being held unjustly.
This escalation follows the earlier arrest of the CEO of Australian-based Resolute Mining along with two employees in the capital, Bamako. They were released only after the company agreed to pay $80 million to settle a tax disagreement, with an additional $80 million pledged for subsequent months.
Mali is recognized as one of Africa’s foremost gold producers. However, it has faced relentless challenges, including ongoing jihadi violence and significant issues related to poverty and food insecurity. The military junta, which assumed control in 2020, has increasingly targeted foreign mining companies in an effort to enhance state revenue.
Experts suggest that Mali might continue employing tactics such as detentions and arrests to compel compliance among international mining firms facing new regulations, which have been implemented retroactively. Beverly Ochieng from the Control Risks Group has noted that given the lack of transparency in the government’s audit process and the newly established mining code, the situation may lead to increased regulatory conflicts, rendering the mining environment unstable for Western enterprises.
In the previous year, Mali’s military regime conducted an audit of the mining industry, subsequently leading to the formulation of a new mining code this year. In August, authorities launched a commission aimed at negotiating with mining companies regarding financial obligations identified in the audit.
Earlier in the year, Canadian firms B2Gold and Allied Gold responded favorably to the government’s demands, making necessary payments and accepting the terms of the new mining code, demonstrating the pressure being exerted on companies operating within the country’s lucrative mining sector.