Mali’s military government is demanding at least 300 billion CFA ($512 million) in outstanding taxes and dividends from Barrick Gold (TSX: ABX), according to multiple sources familiar with the matter. This move is part of Mali’s broader push to increase revenue from mining companies operating in the country.

The demand follows an audit of mining contracts last year and Mali’s efforts to renegotiate existing agreements with mining firms. Under a new mining code, Malian state and private interests in projects could increase to 35% from the current 20%.

Barrick, which operates the Loulo-Gounkoto mines in western Mali with an 80% stake, has reportedly been presented with a bill for at least 300 billion CFA. Sources indicate that the bill primarily covers retroactive tax adjustments and unpaid dividends from 2020 to 2022.

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Tensions between Barrick and the Malian government have been escalating. In September, four Malian staff working for Barrick were briefly detained. On September 30, Barrick announced an agreement with the government to resolve existing claims and disputes, however details were not released to the public.

Barrick’s 2023 annual report mentioned tax collection notices of around $417 million received in November 2023, which the company described as “without merit”. The discrepancy between this figure and the $512 million cited by sources is presumably a result of continued production from the mine.

Information for this story was found via Reuters and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.