Mali’s government and Barrick Gold are scheduled to resume high-level talks on Tuesday to resolve a growing dispute surrounding allegations of unpaid taxes by the Canadian mining company and the seizure of its gold reserves by local authorities.
Barrick, the world’s second-largest gold producer, temporarily suspended its mining operations in Mali after the government seized nearly 3 metric tons of gold, worth approximately $250 million, from its Loulo-Gounkoto complex. This action has escalated tensions between the mining giant and the Malian government.
Key issues for discussion in the upcoming round of negotiations include a demand by Mali for $199 million in unpaid taxes, Barrick’s commitment to comply with the newly enacted mining code, and the return of the confiscated gold. Sources familiar with the matter, speaking on condition of anonymity, confirmed that these topics will be central to the talks.
The new mining code, introduced in 2023, has sparked significant controversy. It mandates higher taxes for mining companies and shifts a larger share of mining revenues to the state, with tax exemptions for miners now removed. Barrick’s compliance with this code has been a focal point in the dispute, as the company faces accusations of not meeting its tax obligations under the revised framework.
The confrontation is not an isolated case in the region. In the wake of surging gold prices, which have hit historic highs, Mali, along with its neighbors Burkina Faso and Niger—each governed by military juntas—are renegotiating mining contracts to ensure they capture a greater share of the profits from their rich natural resources.
Earlier, Mali had also demanded approximately $500 million in back taxes from Barrick. The country has issued an arrest warrant for Barrick’s CEO, Mark Bristow, accusing him of failing to fulfill tax obligations. Barrick, however, has denied any wrongdoing and insists it has acted within the parameters of the existing agreements.
Mali’s efforts to renegotiate terms reflect a broader shift in the region’s approach to mining. The new policies are designed to increase the state’s share of mining revenues at a time when the global price of gold continues to rise, presenting an opportunity for resource-rich nations to capitalize on the windfall.
The dispute has had financial repercussions for Barrick. Analysts at Jefferies have warned that the suspension of mining operations could lead to an 11% drop in Barrick’s earnings before interest, taxes, and amortization (EBITDA) in 2025, highlighting the economic toll of the ongoing conflict.
As negotiations continue, both parties are under increasing pressure to find a resolution. The outcome could have far-reaching implications for Barrick’s operations in Mali and the future of mining in West Africa.