Barrick Gold and the Malian Government are set to commence a new round of negotiations to address an ongoing dispute over alleged unpaid taxes and the seizure of gold stocks.
The dispute arises from Mali's 2023 mining code, which increases the state's share of mining revenues and removes tax exemptions for mining companies.
The negotiations will focus on Mali's demand for $199m, Barrick’s compliance with the new mining code and the release of the seized gold, according to a report by Reuters, citing sources.
Neither Barrick nor the Malian Government has commented on the matter.
Previously, Mali demanded approximately $500m (C$719.76m) in unpaid taxes from Barrick and issued an arrest warrant for Barrick Gold CEO Mark Bristow. Barrick denied any wrongdoing.
The Canadian mining giant has temporarily halted operations in Mali after authorities seized nearly three tonnes of gold, valued at up to $250m, from its Loulo-Gounkoto complex.
Analysts project that halting production at the mine could reduce Barrick's 2025 earnings before interest, taxes and amortisation (EBITDA) by 11%.
The junta-led governments of Mali, Burkina Faso and Niger are pushing to renegotiate terms with gold mining companies, aiming for a larger share of revenues as gold prices reach record highs.
In a related development, Hummingbird Resources finalised a $16.4m (£13.18m) agreement with Mali’s military-led government to operate the Yanfolila gold mine under the new mining code.
This agreement, executed by Hummingbird subsidiary Société des Mines de Komana and a government commission, resolves audit issues and establishes a framework for ongoing operations.
Hummingbird will pay the settlement in two instalments and benefit from a 2% reduction in Mali's special tax on certain products.
Meanwhile, Canadian mining company B2Gold is advancing its plans to invest $10m in exploration at the Fekola gold complex in Mali.
The Fekola complex includes a producing mine and ongoing exploration activities. This decision follows a settlement with the Malian Government over the 2023 mining code, reducing the risk of disruption.
