Randgold mines open after Mali shuts offices amid tax dispute

Mark Bristow, CEO, Barrick Gold Corporation. Pic: Martin Rhodes

RANDGOLD Resources said its three gold mines in Mali continued to operate despite the west African government having closed down the firm’s local offices amid a long-standing tax dispute.

On October 7, the Mali government said it had shut down the offices of companies controlled by Randgold Resources because there was some $80m in unpaid taxes – an allegation Randgold refuted.

“In the last three days, we have closed the offices of the company and seized their bank accounts,” Mohamed Lamine Samake told Reuters. “And if they don’t comply within 10 days, we are going to take our actions to the next level.”

Randgold said in a statement on October 9 it was “disappointed” the Malian government had escalated the tax dispute “… to the extent of closing the group’s offices in the country’s capital Bamako”.

The closure does not affect the operations of its three mines in Mali,” it added.

“As Randgold has previously disclosed, most recently in its August 2016 quarterly report, it has been professionally advised that a large proportion of the tax claims received from the state of Mali in respect of its operations in that country are without merit or foundation,” it said.

“Following the appropriate legal process, it is strongly defending its position in relation to these claims.

Randgold’s Morila, Loulo and Gounkoto operations have legally binding establishment conventions which guarantee fiscal stability, govern the taxes applicable to the companies, and allow for international arbitration in the event a dispute cannot be amicably resolved, it said.

The International Center for Settlement of Investment Disputes had recently awarded $29.2m plus costs to Loulo for taxes found by the tribunal to have been wrongfully collected by the Malian government.

“We have continued to engage with the Malian authorities at the highest level to resolve the remaining issues and we trust that the parties will return to the negotiating table in the spirit of constructive partnership that had previously characterised our dealings in order to find a mutually acceptable solution,” said Randgold Resources CEO, Mark Bristow.