Barrick and Mali government to start new negotiations on Tuesday
Mali’s government and Barrick Gold ABX-T will start a new round of negotiations on Tuesday to resolve a deepening dispute over the alleged nonpayment of taxes by the Canadian miner and the seizure of its gold stocks by authorities in the country, two sources familiar with the matter told Reuters.
Barrick, the world’s second largest gold miner by production has temporarily suspended its mining operations in Mali after the government seized close to 3 metric tons of gold, worth $250 million from the company’s Loulo-Gounkoto complex.
Shares of Barrick were trading down by 2 per cent at the Toronto Stock Exchange at 1700 GMT.
Barrick declined to comment and the Mali government did not respond to requests for comment by Reuters.
Governments in Mali, Burkina Faso and Niger – all led by juntas – are all seeking to renegotiate new terms with gold miners to gain a bigger share of mining revenue at a time when gold prices have hit record highs.
The dispute between Mali and Barrick is over the country’s new mining code that came into effect in 2023. The mining code gives the state a bigger share of mining revenues and removes tax exemptions for mining companies.
The new round of negotiations will be around the tax payments, Barrick’s agreeing to the new mining code and the release of the seized gold, according to people aware of the development who did not wish to be quoted as they are not authorized to speak about the issue.
Mali had previously demanded about $500 million in unpaid taxes from Barrick, sources told Reuters. Mali has also issued an arrest warrant against Mark Bristow, CEO of Barrick Gold.
Barrick denies any wrongdoing.
Jefferies analysts have estimated that suspending production at the mine could cut Barrick’s earnings before interest, tax and amortization by 11 per cent in 2025.