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Mali Detains Canadian Mining Company Employees Over Tax Dispute

Barrick Gold Corporation President and CEO Mark Bristow visits the trading floor of the New York Stock Exchange after ringing the opening bell, Wednesday, Jan. 2, 2019. (AP Photo/Richard Drew,

Authorities in Mali have arrested four senior employees of a Canadian mining company as part of the military regime's efforts to pressure companies in the country's mining sector to pay additional taxes. The employees, who work for Barrick Gold at the Loulo-Gounkoto mining complex, were charged and await trial following their arrests on Monday evening.

Barrick Gold confirmed the arrests in a statement on Tuesday, expressing its rejection of the charges without specifying them. The company has been in negotiations with the Malian government to establish an agreement outlining the economic benefits sharing and legal framework of their partnership.

CEO Mark Bristow stated that attempts to reach a resolution have been unsuccessful so far, but Barrick Gold remains committed to engaging with the government to address the claims and secure the release of their detained colleagues.

Earlier this month, the CEO of Australian company Resolute Mining and two employees were also arrested in Bamako, Mali's capital. They were released after the company paid $80 million to resolve a tax dispute and committed to paying an additional $80 million in the future.

Mali, a significant gold producer in Africa, has faced challenges such as jihadi violence, poverty, and hunger. The military regime, which took power in 2020, is intensifying pressure on foreign mining companies to boost government revenues.

Analysts suggest that Mali may continue using detentions and charges against mining executives to enforce compliance with new regulations and generate immediate funds. The government conducted a mining sector audit last year, leading to the implementation of a new mining code this year that grants authorities a larger share of mining revenues.

Canadian mining companies B2Gold and Allied Gold have already complied with the government's demands, making payments and agreeing to the new mining code earlier this year.

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