THE military government of Mali is pressing for at least CFA300bn ($512 million) in back taxes and unpaid dividends from Canadian mining giant Barrick Gold, according to multiple sources. This push for increased revenue stems from an audit of mining contracts and forms part of a broader effort to renegotiate deals with mining companies operating in the West African country.
Barrick, one of the world’s largest gold miners, had four employees detained last month in Mali. While the workers were released shortly after, the company has been in talks with the government to resolve the tax claims and disputes.
This follows a trend across Africa, where countries are striving to claim a larger share of revenue from their mineral resources. In Mali, a new mining code could see state and private interests in projects rise to 35 percent, up from the current 20 percent, while tax exemptions are being slashed and the number of local management positions is expected to increase.
Barrick gold faces hefty tax bill
Sources indicate that Barrick, which operates the Loulo-Gounkoto mines in Mali with an 80 percent stake, has been presented with a tax bill of at least CFA300bn. The bill reportedly includes retroactive tax adjustments and unpaid dividends from 2020 to 2022. Some insiders suggest that the total amount owed could be as high as CFA500bn ($854 million), though Barrick has not confirmed these figures.
In its 2023 annual report, Barrick disclosed that it had received tax notices from Mali for about $417 million, mostly linked to disputed VAT credits. The company described the claims as ‘without merit’ but has paid $17 million as part of a stay on enforcement while negotiations continue.
Africa’s push for greater share of mining revenues
Mali is not the only African nation reasserting control over its mineral wealth. Neighbouring Burkina Faso has announced plans to revoke permits from certain foreign companies, while Niger has taken similar actions. These developments are part of a continent-wide trend to renegotiate mining agreements and capture more revenue from gold and other critical minerals.
As Mali renegotiates deals with several mining companies, including Barrick, B2Gold, Allied Gold, and Robex, the government aims to bolster state income through increased taxes and revised contracts.
The future of mining in Mali
Mali’s drive to extract more revenue from its gold sector comes amid speculation that, following its recent military cooperation with Russia, the country may transfer revoked permits to Russian firms. However, insiders have denied that any such deals are currently on the table, and Barrick has not indicated any intention to sell its assets in the country.
President Assimi Goita’s administration has made it clear that foreign investors must accept the new mining regulations or leave. In a recent speech, Mali’s Minister for Mining and Economy, Alousseni Sanou, announced that renegotiated contracts with B2Gold, Allied Gold, and Robex would generate an additional CFA245bn annually for the government.
As negotiations continue, Barrick has expressed optimism about reaching a settlement, though no formal agreement has been announced.
