Mali's military junta has issued an arrest warrant for Barrick Gold (NYSE:GOLD) CEO Mark Bristow, further straining relationships with foreign mining companies.
Reuters reported that the warrant accuses Bristow of money laundering and financial violations. Barrick, which operates the Loulo-Gounkoto mining complex in Mali, declined to comment on the issue.
The news follows the detention of four Barrick employees over a $500 million tax dispute.
Gold is Mali's key commodity, accounting for over 80% of its exports and making the country Africa's fourth-largest gold producer. Following the rising prices of this precious metal, the junta, which seized power in 2020, has aggressively pursued higher mining revenues, increasing its stakes in projects to 35% and removing tax exemptions.
Naturally, this caused significant friction with international operators, whose technology and know-how enable large-scale operations.
Barrick's Loulo-Gounkoto complex is a Tier 1 mining operation, producing over 500,000 ounces of gold annually and contributing significantly to Mali's GDP. Over nearly three decades, Barrick has invested more than $10 billion in the country.
Despite CEO Mark Bristow's three visits to Mali this year, negotiations have faltered. "Our attempts to find a mutually acceptable resolution have so far been unsuccessful," Bristow said recently, reiterating Barrick's willingness to engage.
Australia's Resolute Mining (OTCPK: RMGGY), which owns the Syama mine near the border with Côte d'Ivoire, is yet another firm struggling to find a common ground with the junta government. Following a 12-day detention of CEO Terry Holohan and two employees, they paid $160 million in disputed taxes.
Other notable companies in Mali include B2Gold (AMEX:BTG), which owns the Fekola mine, producing over 500,000 ounces annually, and Hummingbird Resources (OTCPK: HUMRF), which operates the Yanfolila mine.
The arrest warrant for one of the leading global mining CEOs shows the volatile political environment in the region.
The junta employs the Kremlin-backed Wagner Group for internal control, with Wagner implicated in the illicit gold trade.
Neighboring nations are following similar patterns: Burkina Faso has vowed to reclaim mining permits, while Niger recently took control of a uranium mine operated by France's state-owned miner Orano.
The political instability in this region is becoming worrisome for the international mining community, as Africa's vast mineral resources remain a notable contributor to global long-term carbon-neutral goals.
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