A judge in Mali on Monday ordered Barrick Gold’s Loulo-Gounkoto gold complex to be placed under provisional administration for six months in an ongoing dispute between the Canadian mining company and the West African nation’s military government over unpaid taxes.

Zoumana Makadji, an accountant and a former Malian minister of health has been appointed as the company’s provisional administrator within 15 days, Judge Issa Aguibou Diallo said in a statement to Barrick’s lawyers.

Barrick is Africa’s largest gold producer. The Loulo-Gounkoto complex and its Kibali mine – located in Congo – rank among the top 10 gold mines globally, according to the company’s website.

Barrick Gold has been in conflict with Mali’s military rulers over alleged unpaid taxes and unfair contracts with past governments. The dispute culminated in an arrest warrant in December for Barrick CEO Mark Bristow and the company’s offer to pay $370 million to the government.

“While Barrick’s subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator,” Barrick said in a statement on its website following the ruling.

‘National economic interests’

A source representing the Mali government told AFP that the ruling “protects national economic interests” and avoids “the sudden closure of the mine in the absence of a revised agreement”.

In December, Barrick submitted a request for arbitration to the International Center for Settlement of Investment Disputes to address disagreements with Mali concerning the Loulo-Gounkoto complex, where the mines are located.

Despite this, the government took a series of escalatory measures, including the arrest of Barrick Gold employees, who remain detained, and the suspension of gold exports.

Barrick, which has been present in Mali for three decades, emphasized that the arbitration process was still ongoing and reaffirmed its commitment to “engaging with the government of Mali, in parallel, to identify a constructive, mutually acceptable solution.”

Source: AFP