Four executives from Canadian mining giant Barrick Gold were arrested in Mali on Monday night as the country’s military-led government intensifies its crackdown on foreign mining companies over disputed tax claims.
The executives, based at Barrick’s Loulo-Gounkoto mining complex, face charges yet to be specified, the company confirmed on Tuesday. This marks the second time these employees have been detained, following a brief arrest in September. Malian authorities have not commented on the case.
Barrick Gold CEO Mark Bristow called the detentions unjust and expressed the company’s commitment to resolving disputes with the Malian government. “Efforts to find a mutually acceptable solution have so far been unsuccessful,” Bristow stated, adding that negotiations continue to ensure the employees’ release and finalize an agreement on profit-sharing and legal frameworks.
Mounting Pressure on Mining Companies
The arrests come amid escalating tensions between Mali’s government and foreign mining operators. Earlier this month, executives from Australian firm Resolute Mining were arrested in Bamako and released only after the company paid $80 million in taxes, with an additional $80 million due in the coming months.
Mali, a leading African gold producer, has ramped up its demands on mining firms under a military regime that took power in 2020. The government has retroactively applied new regulations, including a revised mining code granting the state a larger share of revenues.
Uncertainty in the Mining Sector
Analysts warn that the government’s aggressive approach, including arrests and audits, risks destabilizing the mining sector. “This strategy could deter Western companies as regulatory disputes make operations increasingly unpredictable,” said Beverly Ochieng, an analyst at Control Risks Group.
The government launched a mining sector audit last year and established a commission in August to negotiate payments based on the audit’s findings. However, critics have questioned the audit’s transparency.
Despite the challenges, some companies have complied with the government’s demands. Canadian firms B2Gold and Allied Gold have made payments and agreed to the terms of the new mining code.
Mali’s actions reflect broader efforts to consolidate revenue amid ongoing security challenges, including jihadist violence, and widespread poverty. However, the escalating disputes could have long-term implications for foreign investment in the country’s mining industry.
