A judge in Mali has placed Canadian mining company Barrick Gold under provisional administration in an ongoing dispute with the military government over alleged unpaid taxes

BAMAKO, Mali -- A judge in Mali on Monday ordered Barrick Gold's Loulo-Gounkoto gold complex to be placed under provisional administration for six months in an ongoing dispute between the Canadian mining company and the West African nation's military government over unpaid taxes.

Zoumana Makadji, an accountant and a former Malian minister of health has been appointed as the company's provisional administrator within 15 days, Judge Issa Aguibou Diallo said in a statement to Barrick’s lawyers.

Barrick's website said the company is Africa’s largest gold producer through its Loulo-Gounkoto complex and Kibali mine located in Congo.

Barrick Gold has been in conflict with Mali's military rulers over alleged unpaid taxes and unfair contracts with past governments. The dispute culminated in an arrest warrant in December for Barrick CEO Mark Bristow and the company’s offer to pay $370 million to the government.

“While Barrick’s subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator,” Barrick said in a statement on its website following the ruling.

In December, Barrick submitted a request for arbitration to the International Center for Settlement of Investment Disputes to address disagreements with Mali concerning the Loulo-Gounkoto complex, where the mines are located.

Despite this, the government took a series of escalatory measures, including the arrest of Barrick Gold employees, who remain detained, and the suspension of gold exports.

Barrick, which has been present in Mali for three decades, emphasized that the arbitration process was still ongoing and reaffirmed its commitment to “engaging with the government of Mali, in parallel, to identify a constructive, mutually acceptable solution.”

The company's statement on Monday added: "The ongoing detention of (our) employees — who remain unjustly imprisoned and used as leverage in this process — is deeply concerning and inconsistent with the trust, transparency and accountability required for a genuine long-term partnership.

“To date, no credible rationale has been presented to justify this detention and the Government’s position, and the Government’s ever-increasing demands have lacked both factual and legal foundation.”

Mali is one of Africa’s leading gold producers, but it has struggled for years with jihadi violence and high levels of poverty and hunger. The military seized power in 2020, and the government has placed foreign mining companies under growing pressure as it seeks to shore up revenues.

In November, the CEO of Australian company Resolute Mining and two employees were arrested in Bamako. They were released after the company paid $80 million to Malian authorities to resolve a tax dispute and promised to pay a further $80 million in the coming months.