The Mali Government has hit headlines once again with the detention of four Barrick Gold employees, the miner confirmed in a statement. The military-led government is actively intensifying its efforts to receive more money from mining companies operating in the area, to cash in on growing demands for minerals.
The four employees of Barrick’s Loulo-Gounkoto mining complex have been charged and detained pending trial. While Barrick refutes the 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.
The alleged reason for the detention of Barrick’s employees is that the military-led government is demanding an estimated US$500M in unpaid taxes from the gold miner.
President and chief executive Mark Bristow said that since 30 September, the company had been actively seeking to finalize a Memorandum of Agreement that would guide Barrick’s partnership with the government in future, including the state’s share of the economic benefits generated by the complex and the legal framework under which this would be managed.
“Our 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,” he said.
The confirmation comes weeks after reports of an ongoing dispute Resolute Mining, and Mali’s military government, with Resolute agreeing to pay US$160M to also resolve a tax dispute. The decision follows the unexpected detention of the company’s British CEO, Terry Holohan, and two other employees 10 days ago. Reports indicate that Holohan and his colleagues were arrested while traveling to Bamako for what they believed would be routine negotiations.
The company, which operates a gold mine in Mali, announced on Sunday that it would pay US$80M immediately from its cash reserves, with the remaining amount to be paid over the coming months.
