THE government of Mali and Canadian mining giant Barrick Gold are set to resume negotiations on Tuesday in an effort to resolve a worsening dispute over alleged unpaid taxes and the seizure of gold by Malian authorities, according to sources cited by Reuters.
Barrick, the world’s second-largest gold producer, has temporarily suspended operations at its Loulo-Gounkoto complex in Mali after the government confiscated nearly three metric tons of gold valued at $250 million.
Key issues in negotiations
The talks will focus on three main points: Mali’s demand for $199 million in taxes, Barrick’s compliance with the country’s revised mining code, and the release of the seized gold, according to anonymous sources familiar with the situation.
The dispute stems from Mali’s 2023 mining code, which increased the state’s share of mining revenues and eliminated certain tax exemptions for mining companies. Mali had previously demanded $512 million in unpaid taxes from Barrick, and an arrest warrant has been issued for the company’s CEO, Mark Bristow.
Industry-wide push for revenue
Mali, along with other junta-led governments in Burkina Faso and Niger, is pressing for higher revenue shares from mining operations amid record-high gold prices. This trend reflects a broader effort by these West African nations to renegotiate terms with mining firms.
Barrick has denied any wrongdoing and has not commented on the current situation. Similarly, Mali’s government has not responded to requests for comment, Reuters reported.
Impact on Barrick Gold
Barrick’s share price dropped 0.2 percent to close at C$23 on the Toronto Stock Exchange on Monday. Analysts from Jefferies estimate that the suspension of production at Loulo-Gounkoto could reduce the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) by 11 percent in 2025.
As Mali and Barrick return to the negotiating table, the outcome of these talks will likely determine the future of one of the country’s most significant mining operations.
