Mamou and Samba Toure are central to the negotiations between the Malian military government and Barrick Gold Corporation, following the government’s seizure of three tons of gold worth $245 million. The government demands 125 billion CFA francs in back taxes, with a deadline for Barrick’s response. Allegations against Barrick employees include serious charges, yet negotiations face challenges unlike those experienced by other mining firms. The Toure brothers are pivotal in navigating this complex and evolving mining landscape in Mali.
Negotiations Under Pressure
Mamou Toure and Samba Toure are pivotal figures in the ongoing negotiations between the Malian military government and Barrick Gold Corporation. Both have a history with Randgold, the mining company that Barrick acquired. Recently, the Malian military government seized three tons of gold from Barrick, valued at approximately $245 million, and has set a deadline for the company to respond to its demands by Saturday midnight. The government is seeking a payment of 125 billion CFA francs, equivalent to $199 million, in back taxes. If an agreement is achieved, Mali is prepared to return the confiscated gold and release four Barrick executives who have been held since late November.
Barrick has publicly denied the allegations against its employees, although the specifics of these accusations remain undisclosed. Reports indicate that they pertain to serious charges such as money laundering and financing terrorism. Despite this, Barrick has not provided updates on the status of the negotiations, nor has the Malian Ministry of Mines commented on the matter. This situation poses significant implications for international mining companies and foreign investors who have committed substantial resources in West Africa, especially as the military governments in Mali, Niger, and Burkina Faso strive for a greater share of mining revenues.
Challenges and Developments in Mining Sector
The ongoing negotiations with Barrick have been fraught with difficulties, particularly when compared to the relatively smoother agreements reached by other Western mining firms, such as B2Gold and Resolute. The Sahel region’s military governments are increasingly employing legal action, detentions, and nationalizations to gain control over their mineral wealth. Beverly Ochieng, a senior analyst at Control Risks, notes that while tensions exist, Western mining companies are still invited to expand their operations as long as they adhere to new regulations and tax obligations.
Since taking power in 2020, the Malian junta has committed to scrutinizing its mining sector to ensure that the state benefits from soaring gold prices. Some companies have quickly adapted, like B2Gold, which continues to invest in its Fekola gold complex following a successful agreement. Others, such as Resolute, faced greater challenges, including the arrest of their CEO during negotiations in Mali. Barrick’s relationship with the Malian authorities soured after previous financial disputes that led to arrests and demands for substantial payments. Despite Barrick’s proposal to share economic benefits from its mining operations, the company has struggled to fulfill its commitments, leading to further complications.
As the situation evolves, the Toure brothers play a critical role in shaping the future of mining in Mali, with Mamou Toure emerging as the key negotiator, leveraging his connections to navigate this complex landscape.