Mali Seeks $512 Million in Tax Claims from Barrick Gold Amid Mining Revenue Drive

Mali’s military government is demanding at least 300 billion CFA ($512 million) in outstanding taxes and dividends from Barrick Gold, as part of a broader initiative to increase revenue from mining companies.

Last month, authorities briefly detained four Malian staff members employed by Barrick, the world’s second-largest gold miner. The Canadian company announced on September 30 that it had agreed to collaborate with the government to address existing claims and disputes.

These demands follow an audit of mining contracts conducted last year and the government’s push to renegotiate agreements with mining firms, including B2GOLD, Resolute Mining, and Allied Gold. The goal is to direct a greater share of revenues into state coffers through a new mining code.

Under the new regulations, which come as governments across Africa seek to enhance revenues from mining operations, Mali’s state and private interests in projects could increase from 20% to 35%. The law also aims to reduce tax breaks and increase the representation of Malians in management positions.

Three sources familiar with the discussions between the government and mining companies revealed that Barrick, which operates the Loulo-Gounkoto mines in western Mali with an 80% stake, has been presented with a bill for at least 300 billion CFA.

One source, a consultant working with mining companies in Mali, indicated that the bill mainly consists of retroactive tax adjustments and unpaid dividends.

Another source confirmed that the claim includes taxes owed from 2020 to 2022. A third source, a senior official from another mining company, suggested that Mali believes Barrick may owe as much as 500 billion CFA, citing non-repatriation of funds as part of the claim.

All sources spoke anonymously due to the sensitive nature of the matter in Mali. In response to inquiries, a Barrick spokesperson stated: “We are still in the process of negotiation and will let you know once the agreement is settled.”

In its 2023 annual report, Barrick noted receiving tax collection notices at the end of November 2023 for approximately $417 million concerning VAT credit balances that had offset taxes and royalties but were later disallowed by Malian authorities.

Barrick contended that the tax bills were “without merit,” although it had paid $17 million as part of a six-month stay on enforcement of the charges.

The discrepancy between the amounts reported by sources and Barrick—about $100 million—remains unclear. One source suggested that the government’s claim against Barrick has escalated as investigations deepened.

A fourth source indicated that Barrick might prepare to make a payment between $300 million and $350 million to the government but did not provide further details.

Malian government officials did not respond to requests for comment. In August 2023, the mining ministry stated that an audit had revealed a potential loss of 300 billion to 600 billion CFA francs in revenue, which it aims to recover from companies.

Mali is not alone in seeking a larger share of mining revenues, as neighboring Burkina Faso’s junta-led government recently announced plans to revoke permits from some foreign firms, while Niger’s military government has also rescinded permits.

Sources close to the negotiations in Mali indicated that the junta employs a mix of coercion, including the detention of local staff and the potential threat of mining license revocation, to extract more funds from predominantly Western firms.

President Assimi Goita previously remarked that investors must choose to accept Mali’s new mining regulations or leave the country.

On September 21, Mali’s minister for mining and economy, Alousseni Sanou, announced that B2GOLD, Allied Gold, and Robex had signed new contracts expected to generate an additional 245 billion CFA for the state.

Since Mali sought military support from Russia in its battle against Islamist militants, there has been speculation about whether any revoked permits might be allocated to Russian firms; however, this has yet to occur. A source familiar with the issue noted, “The purchase of Barrick assets in Mali is not on the table.”