Canadian mining giant Barrick Gold has reached an agreement with the Malian government to pay $438 million in a long-standing tax dispute, bringing an end to tensions between the company and the West African nation’s military administration.

The dispute dates back to 2024, when Mali’s military leader, Colonel Assimi Goïta, ordered the seizure of $245 million worth of gold from Barrick Gold’s operations in the country. Additionally, several of the company’s employees were detained over allegations of unpaid taxes. The Malian government, insisting that Barrick owed a total of $512 million, had been in negotiations with the mining firm for months.

After intense discussions, Barrick Gold has now agreed to settle the issue by paying $438 million, a significant portion of Mali’s demand. The payment is expected to be made before the end of the week, allowing the company to continue its mining operations in the country without further legal or political obstacles.

Background of the Dispute

Mali is one of Africa’s top gold producers, and Barrick Gold has been a major player in the country’s mining sector for years. However, under the leadership of Colonel Goïta, the Malian government has taken a tougher stance on foreign companies, insisting that they pay their fair share of taxes and contribute more to the national economy.

The 2024 seizure of gold from Barrick was part of broader efforts by Mali’s military government to exert more control over the country’s natural resources and boost state revenues. The move sent shockwaves through the international mining community, raising concerns about investment risks in the region.

Implications of the Settlement

With this settlement, Barrick Gold can now resume normal operations in Mali without the threat of further government actions. The agreement also signals a potential shift in relations between foreign mining companies and Mali’s military government, as it demonstrates that negotiations can lead to resolutions rather than outright expropriation.

For the Malian government, securing $438 million represents a major financial victory, even though it falls short of the $512 million initially demanded. The funds are expected to support the country’s economy, which has faced challenges due to political instability, sanctions, and security concerns.

Industry experts believe that this case will serve as a precedent for other multinational companies operating in Mali, emphasizing the importance of compliance with local tax regulations and government policies.

As the payment deadline approaches, all eyes will be on Barrick Gold to see if the company fulfills its commitment in full and whether this resolution paves the way for a more stable investment climate in Mali.

More updates to follow.