The government of Mali and Barrick Gold have made progress in the search for an amicable settlement of a tax dispute, with CEO Mark Bristow saying on Monday that negotiations on the implementation of a settlement were nearing finalisation.

The government claims that it is owed $80-million in unpaid taxes by Gounkoto and Somilo, two companies that work at the Loulo-Gounkoto project, as well as Kankou Moussa, a bullion bank that sells gold produced by the mines.

The gold miner previously said it had agreed to pay more than a third of the total fine to help resolve the dispute, which dates back to 2016.

Barrick entered Mali through Randgold Resources, which it bought at the beginning of the year and said that the group was committed to further investment in the country.

The major is currently developing a new underground mine at Gounkoto, replenishing existing reserves through brownfield exploration, prospecting for another world-class discovery along the Mali/Senegal shear zone and undertaking mapping and research in the south of the country.

In the past quarter, Loulo-Gounkoto has again set production records and is on track to meet its production guidance of 690 000 oz of gold for 2019.

Bristow cautioned, however, that Mali’s mining industry was facing many social and fiscal challenges. Overcoming these to ensure that the sector could sustain its contribution to the economy required closer cooperation between government and industry in a spirit of transparency and engagement.

He noted Randgold’s discovery and development of Morila laid the foundation for its mining industry, as well as marking the first true partnership between a host country and investors in West Africa. Since then, Barrick’s operations have paid about $2.7-billion (almost CFA1.6-trillion) in taxes, royalties and dividends to the state. Its mines currently contribute more than 40% of the country’s total gold production.

All its mines in the country are managed by all-Malian executive teams. In addition, some of the key leaders in Barrick’s Africa and Middle East region are the products of the group’s human capital development programmes in Mali.

SUPPORTING LOCAL BUSINESSES
Barrick also contributes to the economy through its support for local businesses, to which it has paid about $190-million (almost CFA112-billion) so far this year alone.

Likewise, it continues to invest in the community and all the villages around its mines now have schools, primary healthcare clinics and access to potable water.

At Morila, which is nearing closure, it has invested significantly in an Agripole, which will provide a sustainable post-mining micro-economy for the villages around the mine. At Loulo, it has established an agricultural college, which this year produced 40 farming graduates who have been deployed across ten farms.