In Bamako, Mali, a significant development in the ongoing dispute between the Canadian mining giant Barrick Gold and the nation’s military government unfolded on Monday. A Malian judge mandated that Barrick’s Loulo-Gounkoto gold complex, a key site in West Africa, is placed under provisional administration for six months due to unpaid taxes. This ruling follows months of contention over tax obligations and contract disagreements.
The court has appointed Zoumana Makadji, a seasoned accountant and former health minister in Mali, as the provisional administrator of the complex. Barrick’s legal team received this communication from Judge Issa Aguibou Diallo, highlighting the judge’s anticipation that Makadji will assume his role within a fortnight.
On its website, Barrick Gold notes that it is the largest producer of gold in Africa, a status significantly bolstered by its operations at the Loulo-Gounkoto complex and the Kibali mine in the Democratic Republic of Congo. However, the relationship with Mali’s military government has been rocky, as disputes over unpaid taxes and legacy contracts have led to severe measures, including an arrest warrant issued last December for CEO Mark Bristow, alongside a proposal from Barrick to settle the matter with a $370 million payment.
Following Judge Diallo’s ruling, Barrick announced that while they remain the rightful owners of the Loulo-Gounkoto mines, the operational control has temporarily shifted to an external administrator. This procedural change comes amid the company’s ongoing arbitration process with the International Center for Settlement of Investment Disputes to resolve their disagreements with the Malian authorities.
In addition to establishing external administration, Mali’s government has escalated the dispute by detaining Barrick employees and halting gold exports, adding volatile elements to an already tense situation. The company, which has had operations in Mali for decades, stresses that they continue to engage with the government, seeking a mutually beneficial resolution despite the ongoing arbitration.
Barrick expressed deep concern over what it views as the unjust detention of its staff, which they believe is being used unduly as leverage. The company criticized the lack of concrete reasoning from the government for the detainees’ continued imprisonment, arguing that Mali’s escalating demands appear to lack justification both factually and legally.
Mali, while being a leading gold producer in Africa, faces challenges such as violent extremism, persistent poverty, and hunger. The country experienced a military takeover in 2020, after which there has been heightened scrutiny of foreign mining operations like Barrick’s, as the government seeks to boost state revenues.
The situation is reminiscent of past episodes, such as November’s arrest of executives from the Australian firm, Resolute Mining. Those officials were released after the company agreed to and partially paid a substantial tax settlement amounting to $80 million, with an additional $80 million pledged for the months ahead to address similar tax disputes.