Gold Clash: Mali and Barrick in High-Stakes Negotiations

Mali's government and Barrick Gold will engage in negotiations over tax disputes and gold seizure. The discussions follow allegations of unpaid taxes and government confiscation of gold stocks. The 2023 mining code revision is central to the talks, aiming for better revenue terms for the state.

Mali's government is set to enter negotiations with Barrick Gold on Tuesday, confronting a growing dispute concerning alleged tax nonpayments by the mining giant, which has resulted in the seizure of nearly 3 metric tons of gold by Malian authorities. The talks aim to settle differences following the implementation of Mali's 2023 mining code.

Barrick Gold, the globally recognized mining company and the world's second-largest gold producer, has temporarily halted operations at its valued Loulo-Gounkoto complex in Mali. Following the government's seizure of the gold assets, valued at $250 million, shares of Barrick saw a 2% decline on the Toronto Stock Exchange.

The quarrel highlights broader regional efforts by Mali, Burkina Faso, and Niger to amend mining agreements, increasing state revenue shares amidst soaring gold market prices. At the heart of the issue is the new mining code that adjusts revenue distribution and tax exemptions. As negotiations progress, all eyes are on Barrick and Mali to see if a consensus on tax settlements and the release of seized assets will be achieved.

(With inputs from agencies.)