Canadian Mining Company, Barrick Gold, Finally Agrees to Pay $438m to Mali.

By Timilehin Ajibade

In 2024, Mali’s military President Assim Goita seized $245m worth of gold from Barrick Gold and detained some of its employees due to unpaid taxes. Mali’s military government has demanded at least $512 million. The company has agreed to pay $438 million before the closure of next week.

The dispute between Barrick Gold, a Canadian gold mining company, and the Malian government has been ongoing since 2023. At the heart of the issue is Mali’s new mining code, which increases the government’s stake in gold mining revenue, allowing the state to acquire up to a 30% stake in mines .

Barrick Gold, which operates the Loulo-Gounkoto mine, one of Mali’s largest gold mines, has been at odds with the government over the new code. The company has argued that the increased stake would make its operations in Mali unviable. In response, the Malian government seized gold worth around $245 million to $380 million and detained some of Barrick’s local employees .

Recently, Barrick Gold announced that it had reached an agreement with the Malian government to end the dispute. Under the deal, Barrick will pay $438 million to the Malian government in exchange for the release of detained employees, the return of seized gold, and the resumption of operations at the Loulo-Gounkoto mine .

The agreement is seen as a significant development, as it could help to ease tensions between Barrick Gold and the Malian government. However, it remains to be seen whether the deal will be approved by the Malian junta, and whether it will have a lasting impact on the mining sector in Mali