Mali arrests four senior employees of Canadian mining company as it pressures firms for more taxes

BAMAKO – Authorities in Mali have detained four senior employees of a Canadian mining company as the military regime in the West African country continues to detain workers to pressure companies in the key mining sector to pay millions in additional taxes.

Barrick Gold confirmed on Tuesday that four employees at the Loulo-Gounkoto mining complex have been charged following their arrest on Monday evening and are awaiting trial.

The company said it denied the accusations but did not say what they were. Malian authorities refused to comment on the arrests.

The same Barrick Gold employees were also briefly detained in September. Barrick Gold said it was working to finalize an agreement with the Malian government that would guide its partnership, including the state’s share of the economic benefits from the mining site and the legal framework under which it would be governed.

In a statement on Tuesday, Barrick Gold CEO Mark Bristow said: “Attempts to find a mutually acceptable solution have so far been unsuccessful, but we are committed to engaging with the government to resolve and secure all claims brought against the company and its employees.” “Early release of our unjustly detained colleagues.”

Earlier this month, CEO and two employees of Australian company Resolute Mining arrested In Bamako, the capital of Mali. They were released after the company paid $80 million to Malian authorities to resolve the tax dispute and promised to pay another $80 million in the coming months.

Mali is one of Africa’s leading gold producers, but He fought jihadist violence for years and high levels of poverty and hunger. The military seized power in 2020 and the regime has put foreign mining companies under increasing pressure as the government seeks to increase revenues.

“Mali will likely continue to use detentions, arrests and even indictments of mining executives to force foreign-owned companies to comply with new regulations and raise short-term funds,” said analyst Beverly Ochieng of consultancy Control Risks Group. Associated Press.

“These regulations are currently applied retroactively, which will likely increase regulatory disputes and make the mining industry challenging and unpredictable for Western companies,” Ochieng added.

Last year, Mali’s military authorities conducted an audit of the mining industry before drafting a new mining law this year. In August, officials formed a commission to negotiate with mining companies over what the government said they were owed, according to the audit.

Ochieng said the government’s oversight was not transparent and the new mining law gave Mali officials a larger share.

Earlier this year, Canadian mining companies B2Gold and Allied Gold accepted the demands, paid authorities and passed new mining legislation.