Mali Seeks Over 300 Billion CFA from Barrick Gold, Tightens Mining Regulations

Mali’s junta is demanding at least 300 billion CFA from Barrick Gold, the world’s second-largest gold producer. This demand is reportedly part of Mali’s effort to increase revenue from mining companies.

It will be recalled that authorities recently detained four Barrick staff members in Mali a week ago. The Canadian company responded by saying it is negotiating with the government to resolve ongoing disputes and claims.

Sources revealed to Reuters that Barrick Gold’s outstanding bill primarily consists of retroactive tax adjustments and unpaid dividends from 2020 to 2022. However, one source estimated that Barrick might owe as much as 500 billion CFA. The demand for payment followed Mali’s recent audit of mining contracts and a push for new agreements that would allocate a larger share of mining revenues to the state.

Under the proposed changes, Mali’s stake in mining projects could increase from 20 per cent to 35 per cent. The government said it is aiming to recover billions of CFA in missing revenues from mining operations. Recent contracts with other mining firms, including B2Gold and Allied Gold, are projected to generate an additional 245 billion CFA for the country.

Mali’s government, under President Assimi Goita, has made it clear to investors that they must accept the new mining regulations or exit the country.

Read More:

• NNPC Increases Pump Price After Terminating Exclusive Agreement With Dangote Refinery
• Kenya Slashes Interest Rate to 12% as Inflation Eases  

About The Author

Confidence Ubani

subscriber

See author's posts