Former Randgold executives Mamou and Samba Toure are leading Mali’s negotiations for $200 million in payments from Barrick Gold following the state seizure of gold. The military government demands back taxes and has detained Barrick staff amid escalating tensions, as resource nationalism becomes a key theme with implications for global miners in the region.
Two former Randgold executives, Mamou Toure and Samba Toure, are influencing Mali’s negotiations with Barrick Gold for $200 million in payments, as they serve on the government’s negotiating team. Mali’s military government had taken control of $245 million worth of gold from Barrick in December and set a deadline for the miner’s response to its demands, which passed without resolution. The government expects Barrick to settle its back taxes in order to release detained executives.
Barrick denies the accusations against its employees, which include serious allegations such as money laundering and terrorism financing. As Mali seeks to assert more control over its mining profits, its stance reflects a trend among Sahel nations, leading to increased tensions with foreign miners who previously operated under different rules.
The Toures play key roles in this negotiation landscape, with Mamou being particularly influential due to his ties with the finance minister, who is central to the talks. Despite their shared surname, the two men are not related, with Samba bringing considerable experience from his previous role as West Africa operations director at Randgold.
Mali, Africa’s second-largest gold producer, had not adequately benefited from gold production, leading Mamou to assert the need for a correction of this imbalance. Many mining companies are adapting to new regulations, with some managing to negotiate agreements successfully, unlike Barrick, whose ongoing disputes have drawn significant attention.
Malian authorities have taken a hard stance over Barrick’s operational compliance, demanding significant back payments during a period where gold prices are high. While Barrick proposes generous agreements similar to previous deals in Tanzania, the Malian military government insists on immediate payment instead of installments, causing further delays in negotiations.
Tensions between Barrick and Mali escalated throughout 2022, including incidents of detention of employees and legal disputes evolving into conflict over taxation and operational rights. Following a series of negotiations, the government took drastic steps including the seizure of Barrick’s gold and issuing arrest warrants for senior company executives.
The two Toures, involved in consulting and auditing foreign companies, have influenced negotiations following their association with the newly established state-owned mining company, SOREM. However, their roles face challenges, including potential shifts in negotiation leadership that reflect the government’s increasing control over mining negotiations.
The ongoing negotiations between Barrick Gold and the Malian government highlight the challenges that foreign miners face in a changing political and economic landscape in West Africa. The military government has been seeking to maximize national benefits from mining operations amid increasing gold prices. As local authorities assert more control, foreign operators are forced to adapt to new regulations and demands, raising broader implications for the region’s mining sector. The influence of individuals with insider knowledge of the industry, such as the Toures, further complicates these negotiations as they represent a shift toward national resource nationalism.
The situation between Mali and Barrick Gold reflects a broader trend of increasing resource nationalism in West Africa, where military-led governments are asserting more control over mining revenues. The involvement of former mining executives in the negotiation process indicates a strategic use of insider knowledge. As Mali continues its negotiations with Barrick, the outcomes will likely shape future interactions between African governments and foreign mining companies, emphasizing the importance of compliance with new regulatory frameworks.
Original Source: www.mining.com
