Four Barrick Gold employees detained in Mali

Four employees from Barrick Gold‘s (TSX: ABX; NYSE: GOLD) Loulo-Gounkoto mining complex have been charged and detained in Mali as a trial awaits while the military-led government intensifies efforts to impose new taxes on mining companies.

Barrick refuted the charges, which weren’t specified, and said on Tuesday that it would continue to engage with the Malian government to find an amicable settlement. The arrests followed the release last week of Resolute Mining (ASX: RSG; LSE: RSG) CEO Terry Holohan and two colleagues after 12 days. Four other Barrick employees were detained in October. 

Barrick says it’s been trying to finalize a memorandum of agreement that would guide the company’s partnership with the government. It would include “the state’s share of the economic benefits generated by the complex” and “the legal framework under which this would be managed,” CEO Mark Bristow said in a release. 

“Our attempts to find a mutually acceptable resolution have so far been unsuccessful, but we remain committed to engage with the government in order to resolve all the claims levied against the company and its employees and secure the early release of our unjustly imprisoned colleagues.”

Tanzania case

Despite the setback in Mali, Barrick had more positive news on Tuesday concerning another African operation, the North Mara mine in Tanzania. The Ontario Superior Court dismissed a case brought by human rights groups and Tanzanian residents to sue Barrick for alleged human rights abuses.

The court bid, seeking unspecified damages, concerned security incidents with the Tanzanian Police that were defacto mine guards. The ruling granted Barrick’s motion that the Ontario court lacked jurisdiction and wasn’t the appropriate forum. 

“This case should never have been brought in Canada,” the company said in a release. “We are proud of Barrick’s substantial contributions to the local communities in the vicinity of the North Mara mine, who continue to be supportive of our operations.”

Mali mining code

Mali, one of Africa’s top gold producers, passed a new mining code last year to increase state stakes to 35% from 20% and has been pressuring new deals with companies. Resolute agreed this month to pay about $160 million to resolve its tax dispute with the government. The detention of foreign officials is becoming a pattern as the government seeks to extract more income from the sector.

The nation has been under military rule since 2020, when interim leader Colonel Assimi Goita overthrew the elected president, citing the administration’s inability to counter Islamist insurgencies.

Since the coup, Kremlin-backed Wagner Group mercenaries have entered the country, prompting the withdrawal of European forces and a United Nations peacekeeping mission.

Shares of Barrick fell 4¢ to close at $24.69 apiece on Tuesday in Toronto, giving the miner a market capitalization of $44.6 billion.