Bamako – Mali on Tuesday closed the Bamako office of Canadian mining giant Barrick Gold over a tax dispute, Malian authorities and the company told AFP.
The firm had been in dispute for some weeks with Bamako accusing the Canadians of failing to pay due taxes relating to their operations at Loulo-Gounkoto, one of the world’s largest gold mines in which the Canadians have an 80 percent stake and in which the Malian state holds the remaining 20 percent.
The military junta running the country has been tightening regulations on a sector key to the country’s economy, introducing a new industry code last year granting the government a bigger share of profits from mining activities in the name of national sovereignty.
Mali closes Barrick Gold’s Bamako office over alleged non-payment of taxes pic.twitter.com/Ztyz5pkAWm
— Sarah (@Katniss_THG_) April 15, 2025
In a statement, Barrick Gold insisted that it “has continued to engage in good faith with the Government of Mali to finalise an agreement that was fully negotiated and accepted by the Ministry of Finance in February 2025.
“From the outset of its engagement, Barrick has worked to find a constructive solution,” it said.
In an October 2024 agreement aimed to resolve “all outstanding disputes”, Barrick said it paid Mali some $85 million “as part of the ongoing negotiations”.
Barrick Gold $GOLD is facing escalating tensions with the Government of Mali regarding its Loulo-Gounkoto mine operations. Despite paying $85 million in October 2024 and reaching a framework agreement in February 2025, the situation has deteriorated with:
– Government’s arrest… pic.twitter.com/wIgyfhwLQj
— LWS Financial Research (@lwsresearch) April 16, 2025
“Despite this, the government subsequently took a series of escalatory actions, including the arrest of Barrick employees – who remain unfairly in detention – and the suspension of gold shipments,” the company stated referring to mining activities at Loulo-Gounkoto that have been halted since a January seizure of three tons of gold by the authorities.
Four Malian employees of the company have been in detention since November and Malian authorities issued national arrest warrants in December for the company’s South African CEO and the complex’s Malian general manager on allegations of “money laundering”.
Barrick Gold said that in its view, progress on the spat was now being “obstructed by a small group of individuals placing personal or political interests above the long-term interests of Mali and its people” with gold exports currently blocked.
The Toronto-based firm added it “remains ready to honour the agreement envisioned by both partners and stands prepared to immediately restart production.”
The mine, which is situated in western Mali, near the border with Senegal, was opened two decades ago and the first gold from underground operations was produced in 2011.
The site consists of both open pit and underground mining and is estimated to have more than seven million ounces of gold reserves.
According to Mining Technology, the mine contributed around $1 billion to the Malian economy in 2023.
Follow African Insider on Facebook, Twitter and Instagram
Picture: X/@cecild84
For more African news, visit Africaninsider.com
Source: AFP
