Mali’s military government is demanding at least 300 billion CFA ($512 million) in unpaid taxes and dividends from Barrick Gold as part of a broader effort to increase revenue from mining companies.
Last month, Malian authorities briefly detained four local employees of Barrick, the world’s second-largest gold miner. In response, Barrick announced 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 ongoing efforts to renegotiate agreements with companies such as B2Gold, Resolute Mining, and Allied Gold. The objective is to ensure a larger share of mining revenues flows into the state’s coffers through a revised mining code.
Under the new regulations, which align with efforts across Africa to boost mining-related revenues, Mali’s state and private interests in mining projects could increase from 20% to 35%. The law also seeks to reduce tax breaks and ensure greater representation of Malians in management positions.
According to three sources familiar with the discussions, 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, explained that the bill largely consists of retroactive tax adjustments and unpaid dividends. Another source confirmed that taxes owed from 2020 to 2022 are part of the claim. 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.
Due to the sensitive nature of the matter, all sources spoke anonymously. In response to inquiries, a Barrick spokesperson confirmed that the company is still negotiating with the government and will provide updates once an agreement is finalized.
Barrick’s 2023 annual report noted that the company received tax notices at the end of November 2023 for approximately $417 million, concerning VAT credit balances that had previously offset taxes and royalties but were later disallowed by Malian authorities. Barrick argued that the tax bills were “without merit,” although the company paid $17 million as part of a temporary six-month stay on enforcement.
The discrepancy between the amounts reported by sources and Barrick—about $100 million—remains unclear. One source suggested that the government’s claim has escalated as investigations deepened. Another source indicated that Barrick might be preparing to make a payment between $300 million and $350 million to the government, though no further details were provided.
Malian government officials did not respond to requests for comment. In August 2023, the mining ministry reported that an audit had revealed a potential loss of 300 billion to 600 billion CFA in revenue, which the government aims to recover from companies.
Mali is not the only country seeking a larger share of mining revenues. 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 familiar with the negotiations in Mali indicated that the junta is using a mix of tactics, including detaining local staff and threatening to revoke mining licenses, to extract more funds from primarily Western companies.
President Assimi Goita previously indicated that investors must either accept Mali’s new mining regulations or leave the country.
In late September, Mali’s minister of 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 fight against Islamist militants, there has been speculation that any revoked permits might be awarded to Russian firms. However, this has not yet occurred, and a source familiar with the issue emphasized that the purchase of Barrick assets in Mali is not under consideration.
