Mali: 4 Executives from Canadian company Barrick Gold arrested

Malian authorities have arrested four executives from a Canadian mining company as the country's military regime continues to detain workers to pressure companies in its mining sector to pay millions of dollars in additional taxes.

Barrick Gold confirmed in a statement on Tuesday that four employees from its Loulo-Gounkoto mining complex had been charged and were awaiting trial after their arrest on Monday night.

The company stated that it rejected the charges but did not specify what they were. Malian authorities declined to comment on the arrests.

These same Barrick Gold employees had been briefly detained in September. Barrick Gold says it is working to finalize an agreement that would guide its partnership with the Malian government, including the state's share of the economic benefits generated by the mining site and the "legal framework in which this would be managed."

In his Tuesday statement, Barrick Gold CEO Mark Bristow indicated that "efforts to find a mutually acceptable solution have so far been unsuccessful, but we remain committed to engaging with the government to resolve all complaints filed against the company and its employees and to secure the swift release of our colleagues who have been unjustly imprisoned."

Tax Dispute

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

Mali is one of Africa's leading gold producers but has been grappling with jihadist violence and high levels of poverty and hunger for years. The military seized power in 2020, and the regime has been increasing pressure on foreign mining companies in an effort to consolidate state revenues.

"Mali is likely to continue using detentions, arrests, and even charges against mining executives to force foreign companies to comply with new regulations and generate short-term funds," said Beverly Ochieng, an analyst at the consulting firm Control Risks Group.

Mining Code

"These regulations are currently being applied retroactively, which risks increasing regulatory disputes and making the mining sector difficult and unpredictable for Western companies," Ochieng added.

Last year, Mali's military authorities conducted an audit of the mining sector before drafting a new mining code this year. In August, authorities set up a commission to negotiate with mining companies over what the government believes they owe according to the audit.

Ochieng said that the government's audit had not been transparent and that the new mining code gives a larger share to the Malian authorities.

Earlier this year, Canadian mining companies B2Gold and Allied Gold accepted the demands by making payments to the authorities and agreeing to the new mining code.