The enforcement began on January 11, according to Barrick’s memo, which noted that the company may be compelled to suspend operations if the issue remains unresolved.
The Loulo-Gounkoto site contributes significantly to Barrick’s global production, accounting for about 14 percent of its estimated gold output for 2025. Barrick has an 80 percent interest in the operations, with the Malian government owning the remaining 20 percent.
This comes amid ongoing tensions over the Malian government’s claims of unpaid taxes and dividends, which Barrick has disputed.
Mali claims the company owes US$512 million in unpaid taxes and dividends, a claim Barrick has rejected.
Gold is Mali’s primary export, contributing over 80 percent of the country’s total export revenues in 2023. The West African country’s government has been led by the military since a 2021 coup.
In 2023, Mali introduced a new mining code that aims to raise the country’s stake in mining operations from 20 to 35 percent.
The new code also allows the government to collect 7.5 percent of sales revenue when gold prices exceed US$1,500 per ounce.
Last year, following an audit into the mining sector, Mali began pursuing alleged back taxes and dividends owed by international mining companies.
Barrick’s dispute, however, remains unresolved at this time.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Leave a Reply