The conflict revolves around Barrick’s Lulo Ogukonto complex, with the Malian government demanding a $197 million settlement, a figure the Canadian mining giant is refusing to pay in a lump sum.

Central to the dispute is the implementation of Mali’s new mining code, introduced in 2023, which the government insists Barrick comply with. This code raises the state’s share of mining revenues and removes certain tax exemptions, impacting the company’s operations. While most other mining companies have agreed to the new terms, Barrick withdrew from its agreement in September, escalating tensions.

Sources familiar with the discussions revealed that the government has also seized 3 tonnes of gold from the mine and detained four Barrick employees since November. In return for a settlement, Mali is reportedly willing to return the seized gold and release the employees, though the specifics of any potential deal remain unclear.

Malian authorities argue that the root of the conflict lies in financial discrepancies revealed by an audit, which uncovered significant shortfalls in the country’s finances, with estimates suggesting Barrick owes up to 600 billion CFA. Furthermore, the new mining code, which now gives the government 50% of profits compared to the previous 15%, has strained Barrick’s profitability.

Malian academic Diara Zoumara from the University of Bamako suggested that while the tensions have been exacerbated by the seizure and export restrictions, they reflect deeper issues concerning the implementation of the new mining regulations.

--ChannelAfrica--