KEY POINTS
- Mali aims to recover $512 million from Barrick Gold.
- New mining laws increase state share to 35%.
- Barrick disputes tax claims, calling them “without merit.”
Mali’s military government is seeking at least 300 billion CFA francs ($512 million) in outstanding taxes and dividends from Barrick Gold, according to three sources. The move is part of Mali’s effort to increase revenue from mining companies.
Mali demands back taxes from Barrick Gold after mining audit
Last month, authorities in Mali briefly detained four Malian staff members working for Barrick, the world’s second-largest gold miner. The Canadian company said on Sept. 30 it had agreed with the government to resolve existing claims and disputes. The demands on Barrick follow an audit of mining contracts last year and a subsequent push by Mali to renegotiate agreements with mining firms, including B2Gold, Resolute Mining, and Allied Gold, to increase state revenues under a new mining code.
Under the new code—introduced as African governments seek more revenue from mines producing gold and critical minerals for the global energy transition—the Malian government and private stakeholders’ shares in mining projects could rise to 35%, up from the current 20%. The law also seeks to reduce tax breaks and increase the number of Malian nationals in management roles. Three sources with direct knowledge of the talks said Barrick, which operates the Loulo-Gounkoto mines in western Mali with an 80% stake, had been presented with a bill for at least 300 billion CFA francs.
Barrick Gold in negotiations over $512 million tax bill
One source, a consultant working with mining companies in Mali, said the bill is primarily for retroactive tax adjustments and unpaid dividends. Another source, involved with both mining companies and the Malian government, confirmed the figure, stating it covers taxes owed for 2020, 2021, and 2022. A third source, a senior official with another mining company in the country, said Mali believes Barrick owes as much as 500 billion CFA francs, and the claim is also tied to the non-repatriation of funds.
All sources spoke anonymously due to the sensitivity of the matter.
A Barrick spokesperson said: “We are still in the process of negotiation and will update once the agreement is settled.” In Barrick’s 2023 annual report, the company said it received tax notices at the end of November 2023 for around $417 million related to VAT credit balances that had offset taxes and royalties but were later disallowed by Malian authorities. Barrick said the tax bills were “without merit” but confirmed it had paid $17 million as part of a six-month stay on enforcement.
It is unclear why the amount provided by the sources is about $100 million higher than the figure mentioned by Barrick. One source suggested that the amount Mali says Barrick owes increased as authorities deepened their investigations.
A fourth source, a senior official with another mining company, said Barrick was preparing to make a payment of $300-$350 million to the government, though they lacked further details. Barrick declined to comment.
Malian government officials did not respond to requests for comment. In August 2023, the mining ministry said the audit revealed the government was missing 300 billion to 600 billion CFA francs in revenues it plans to recover from companies.
New mining contracts to boost Mali’s revenue
Mali is not alone in seeking a larger share of mining revenues. In neighbouring Burkina Faso, the junta-led government recently announced plans to strip some foreign firms of permits. Niger’s military government has also revoked permits.
President Assimi Goita said last year that investors had the choice to accept Mali’s new mining rules or leave the country.
On Sept. 21, Mali’s Minister of Mining and Economy, Alousseni Sanou, said B2Gold, Allied Gold, and Robex had signed new contracts expected to generate an additional 245 billion CFA francs per year for the state.
Since Mali called on Russia for military support in its fight against Islamist militants, there has been speculation that mining permits taken from current operators could be handed to Russian firms. However, this has not yet occurred.
“The purchase of Barrick assets in Mali is not on the table,” Reuters reported.
