
The government of Mali and Barrick Gold (ABX.TO) are set to resume negotiations on Tuesday in an effort to resolve escalating tensions over alleged tax violations and the confiscation of gold by Malian authorities, according to sources close to the matter.
The dispute arose after Mali seized nearly 3 metric tons of gold valued at $250 million from Barrick’s Loulo-Gounkoto mining complex. Barrick, the world’s second-largest gold producer, responded by suspending its operations in the country.
Key issues in the talks include Mali’s demand for $199 million in taxes, Barrick’s adherence to the nation’s 2023 mining code, and the return of the seized gold. Sources, speaking on condition of anonymity, shared these details with Reuters but were not authorized to discuss the matter publicly.
Barrick’s shares closed at C$23 on Monday, down 0.2% on the Toronto Stock Exchange.
The dispute highlights a growing trend among West African nations, including Mali, Burkina Faso, and Niger—countries now led by military juntas—seeking to renegotiate agreements with mining companies to capture a larger share of the soaring gold revenues.
Mali’s 2023 mining code increases state revenue shares and removes tax exemptions for mining firms, prompting pushback from companies like Barrick. Previously, Mali had sought $500 million in back taxes from the miner, according to insiders.
Additionally, an arrest warrant has been issued for Barrick CEO Mark Bristow. Barrick, however, denies any wrongdoing.
Analysts at Jefferies predict that the production halt could reduce Barrick’s 2025 earnings before interest, taxes, and amortization (EBITDA) by 11%.