Barrick Gold and the African states military-led government have been at odds over a new extraction contract

Mali and Canadian miner Barrick Gold have suspended talks to resolve a long-running dispute over unpaid revenue to the West African country's authorities after failing to reach an agreement, Bloomberg reported on Tuesday, citing local sources.

The former French colony is one of Africa's top gold producers, with large-scale operations such as the Loulo and Gounkoto mines, which are 80% owned by Barrick and 20% by the Malian government. However, since taking power in a coup in 2020, the new leadership in Bamako has sought more revenue from the sector to boost state income as the price of the precious metal continues to rise. In 2023, the Sahel state passed a new mining code allowing the military government to own up to 30% of any new projects.

According to Bloomberg sources, Mali is demanding a settlement payment of 125 billion CFA francs ($197 million) from Barrick as well as compliance with the new mining policy. The Sahel state reportedly prefers an upfront payment, while Barrick wants a payment plan spread out over time.

READ MORE: Canadian mining group suspends operations in African state

Mali had previously demanded around $500 million in unpaid taxes from the world's second-largest miner, according to reports. Last October, the corporation announced that it had paid $85 million to the Malian government following a preliminary agreement with Bamako to end concession disagreements.

However, tensions have since escalated, with Mali detaining four senior Barrick executives. It has also issued an arrest warrant for the company's CEO, Mark Bristow, on charges of money laundering and financing of terrorism. The company has denied the allegations.

Last month, the miner temporarily suspended operations in Mali after the government seized gold stocks from its sites in response to a court order. The vast Loulo-Gounkoto complex produced nearly 700,000 ounces of gold in 2023, accounting for roughly 14% of Barrick's total output.

Bristow told Bloomberg last week that the firm was making progress in the negotiations, but not as swiftly as expected.

Australian firm Resolute Mining agreed last year to pay Mali $160 million to settle a tax dispute and obtain the release of three of its staff, including its now-resigned CEO, who had been detained.

READ MORE: Australian mining company to pay African state $160 million

(RT.com)