Mali frees Resolute executives after $160 million deal, AFP reports
The three executives, including CEO Terry Holohan, were freed from detention on Wednesday.
Mali’s military government is seeking at least 300 billion CFA ($512 million) in outstanding taxes and dividends from Barrick Gold (TSX: ABX) (NYSE: GOLD), according to a Reuters report.
Authorities in Mali briefly detained four Malian staff members working for Barrick last month. On Sept. 30, Barrick stated 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 (TSX: BTO), Resolute Mining (ASX, LON: RSG) and Allied Gold (TSX: AAUC), to channel a greater share of revenues into state coffers under a new mining code.
Under the new code, the percentage of Malian state and private interest in projects could rise from 20% to 35%. The law also aims to reduce tax breaks and increase the number of Malians in management roles.
Three sources told Reuters that Barrick, which runs the Loulo-Gounkoto mines in western Mali with an 80% stake, had been presented a bill for at least 300 billion CFA.
One of the sources, a consultant working with mining companies in Mali, said the bill was primarily for retroactive tax adjustments and unpaid dividends. Another source, who works with mining companies and the Malian government, confirmed the figure, stating that the bill would cover taxes owed from 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. The claim is also related to the non-repatriation of funds.
When asked to comment, a spokesperson for Barrick said, “We are still in the process of negotiation and will let you know once the agreement is settled.”
In Barrick’s 2023 annual report, the firm noted it had received tax collection notices at the end of November 2023 for approximately $417 million relating to VAT credit balances that had offset taxes and royalties but were subsequently disallowed by Malian authorities.
Barrick argued that the tax bills were “without merit” but confirmed it had paid $17 million as part of a six-month stay on enforcement.
A fourth source, also a senior official with another mining company, said they had heard Barrick was preparing to make a payment of $300-$350 million to the government. The source did not provide further details. Barrick declined to comment.
Barrick CEO Mark Bristow recently said the company is aiming to grow its presence in the West African country to ensure the long-term sustainability of its Loulo-Gounkoto operation.
The Loulo-Gounkoto complex currently holds gold reserves estimated at 6.7 million ounces, included within a measured and indicated resource totalling 9.1 million ounces. It produced 683,000 ounces of gold in 2023 and is on track to meet its production guidance for the current quarter and the year.
Barrick shares fell 2% by 12:10 p.m. EDT Tuesday. The miner has a market capitalization of $34.6 billion.
(With files from Reuters)
