Mali and Canadian miner Barrick agree to resolve tax dispute, ending 2-year standoff

BAMAKO, Mali (AP) — Mali’s ruling junta and Canadian miner Barrick have reached an agreement resolving a tax dispute involving one of Africa’s largest gold mining complexes, authorities and the company said Monday.

The agreement ends a two-year standoff between Mali and the company over the country’s new mining code, which increases the state’s share of revenue from gold producers. The dispute had previously led to the arrest of four Barrick Gold employees, who remain detained, and an arrest warrant for the company’s CEO Mark Bristow.

In June, the company’s Loulo-Gounkoto gold mining complex — one of the continent’s largest — was placed under provisional administration for six months.

In December last year, Barrick had submitted a request for arbitration to the International Center for Settlement of Investment Disputes to address disagreements with Mali about Loulo-Gounkoto.

“Each party has committed to halting the ongoing legal proceedings as well as the various disputes over customs and tax issues,” Mali’s Minister of Mines, Amadou Keita, said on state television Monday.

Keita said Barrick has agreed to sign the 2023 mining code, which lets the state take up to 30% ownership of any new mining project.

“All charges brought against Barrick, its affiliates and employees will be dropped and the legal steps for the release of the four detained Barrick employees will be undertaken,” the Canadian company said in a statement.

It said operational control of the Loulo-Gounkoto complex will be handed back to Barrick.

A Barrick official with knowledge of the negotiation said both parties have agreed to settle their differences within six days.

“During those six days, Barrick must withdraw its complaint from international arbitration and pay a sum of around $180,000. In return, the Malian government will release the four Barrick employees and return the three tons of gold seized by the military junta earlier this year,” said the official, who spoke to The Associated Press on condition of anonymity to discuss the sensitive talks.

Barrick has been operating in Mali for three decades. The company’s website says it is Africa’s largest gold producer through its Loulo-Gounkoto complex and the Kibali mine in Congo.

Mali is one of Africa’s leading gold producers, but it has struggled for years with jihadi violence and high levels of poverty and hunger. The military seized power in 2020, and the government has placed foreign mining companies under growing pressure as it seeks to shore up revenues.

Last year, the CEO of Australian company Resolute Mining and two employees were arrested in Bamako. They were released after the company paid $80 million to Malian authorities to resolve a tax dispute and promised to pay a further $80 million in coming months.

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AP’s Africa coverage at: https://apnews.com/hub/africa