Four employees from Barrick Gold鈥檚 (NYSE: GOLD) (TSX: ABX) Loulo-Gounkoto mining complex have been detained in Mali as the military-led government intensifies efforts to impose additional taxes on mining companies.
Discussions between Barrick and Malian authorities on implementing new regulations at Loulo-Gounkoto 鈥� one of the African nation鈥檚 largest gold mines 鈥� have been聽ongoing for months. Sources cited by聽搁别耻迟别谤蝉听reported that Mali is seeking around $500 million in unpaid taxes from Barrick as the government aims to increase revenue from the mining sector.
鈥淲hile Barrick refutes these charges, it said it would continue to engage with the Malian government to find an amicable dispute settlement that would ensure the long-term sustainability of the complex,鈥� the company said in a press release.
Barrick CEO Mark Bristow said that since September 30, the company had been actively seeking to finalize a memorandum of agreement that would guide Barrick鈥檚 partnership with the government in future, including 鈥渢he state鈥檚 share of the economic benefits generated by the complex鈥� and 鈥渢he legal framework under which this would be managed.鈥�
鈥淥ur attempts to find a mutually acceptable resolution have so far been unsuccessful, but we remain committed to engage with the government in order to resolve all the claims levied against the company and its employees and secure the early release of our unjustly imprisoned colleagues,鈥� he said.
Four Barrick employees had been arrested in October.
Last week, Resolute Mining鈥檚 CEO Terry Holohan and two other employees were released from detention in Mali days after the gold mining company聽agreed to pay聽about $160 million to resolve a tax dispute with the government.
Mali is one of Africa鈥檚 top gold producers, and the detention of foreign officials is becoming a pattern as the government seeks to extract more income from the sector.
The country has been under military rule since 2020, when interim leader Colonel Assimi Goita ousted the West African nation鈥檚 elected president, citing the previous regime鈥檚 failure to repel the Islamist insurgents.
Since then, mercenaries from the Kremlin-backed Wagner Group have been deployed to the country, while European forces and a United Nations peacekeeping mission were forced to withdraw.
Hit by sanctions and cut off from Western aid, authorities have pursued both Resolute and Barrick Gold for allegedly unpaid taxes.
Shares of Barrick fell 0.7% by 12:10 p.m. EDT. The Canadian miner has a market capitalization of C$42.9 billion ($30.5 billion).
(With files from Reuters)
Read More: Barrick says Ontario Superior Court dismisses 2022 Tanzanian security case