Mali to take over Canadian-owned Barrick Gold mine over tax dispute
A Malian court has ordered Barrick Gold's Loulo-Gounkoto gold mining complex to be placed under provisional administration for six months, as tensions escalate between the Canadian mining giant and Mali's military-led government over alleged unpaid taxes.
A Malian court has placed Barrick Gold's Loulo-Gounkoto mining complex under provisional administration for six months.
The tensions between Barrick Gold and Mali's government stem from allegations of unpaid taxes and inequitable contracts.
Barrick has requested international arbitration to resolve disputes while Mali increases measures such as employee detentions.
On Monday, Judge Issa Aguibou Diallo instructed that Zoumana Makadji, a chartered accountant and former Malian Minister of Health, be appointed as the provisional administrator within 15 days. This move effectively shifts operational control of one of Africa's most valuable mining assets to an external authority.
Dispute over taxation and past agreements
Barrick Gold, Africa's largest gold producer, has found itself at odds with Malian authorities, who accuse the company of owing significant unpaid taxes and of benefiting from lopsided contracts signed under previous administrations. In December, tensions peaked with the issuance of an arrest warrant for Barrick CEO Mark Bristow and the company's offer of a $370 million settlement to the government.
" While Barrick's subsidiaries remain the legal owners of the mine, operational control has been transferred to an external administrator," the company confirmed in a statement on its website.
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International arbitration and escalations
Barrick has since submitted an arbitration request to the International Centre for Settlement of Investment Disputes (ICSID) to resolve its differences with Mali concerning the Loulo-Gounkoto complex. However, rather than awaiting arbitration outcomes, the Malian government intensified its actions by detaining several Barrick employees and halting gold exports.
The company, which has operated in Mali for three decades, insists it is still open to dialogue with authorities, stating it remains committed to "engaging with the government of Mali, in parallel, to identify a constructive, mutually acceptable solution."
Employee detentions and rising pressure
Barrick strongly condemned the ongoing detention of its employees, branding it "deeply concerning and inconsistent with the trust, transparency and accountability required for a genuine long-term partnership." The company further criticised the Malian government's conduct, noting that "no credible rationale has been presented to justify this detention," and accused the government of using the detained staff as leverage in ongoing negotiations.
Wider context: Mali's mining sector under strain
Mali, a top gold producer on the African continent, is grappling with internal security issues and economic challenges. Since the military takeover in 2020, the transitional government has exerted increasing pressure on foreign mining operators to boost revenue collection.
In a related case last November, the CEO of Australia-based Resolute Mining and two staff members were arrested in Bamako. Their release followed the payment of $80 million to the Malian government, with a further $80 million pledged.
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(TSX:KEY) operates an integrated Canadian-based energy infrastructure business with extensive interconnected assets and depth of expertise in delivering energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage and marketing; iso-octane production and sales; and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner. Additional InformationFor more information about Keyera Corp., please visit our website at or contact: Investor InquiriesDan Cuthbertson, General Manager, Investor RelationsKatie Shea, Senior Advisor, Investor Relations Email: ir@ 1-403-205-7670Toll free: 1-888-699-4853 Media InquiriesBrandon Wood, Director, External AffairsEmail: media@ 1-855-797-0036 Notes: 1 This term is not a standard measure under GAAP. See the section of this news release titled "Non-GAAP and Other Financial Measures" for additional information. 2 Net debt to adjusted EBITDA is calculated in accordance with the covenant test calculations related to the Corporation's credit facility and senior note agreements and excludes hybrid notes. Non-GAAP and Other Financial Measures This news release refers to certain financial and other measures that are not determined in accordance with Generally Accepted Accounting Principles ("GAAP") and as a result, may not be comparable to similar measures reported by other entities. These non-GAAP and other financial measures are intended to provide investors with supplemental information to assess the financial performance and strategic impact of the transaction. Specifically, this news release references non-GAAP financial measures including adjusted EBITDA, distributable cash flow ("DCF"), DCF per share, payout ratio, realized margin and fee-based adjusted EBITDA. These measures do not have standardized meanings under GAAP and should not be considered in isolation or as a substitute for performance measures reported under GAAP. Management believes these measures facilitate the understanding of Keyera's operating results, financial position, and expected impact of the transaction, particularly in relation to cash flow stability, dividend sustainability, and long-term growth. Forward-looking metrics such as expected synergies, accretion to DCF per share and pro forma leverage are based on certain assumptions and estimates that are subject to change. 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The forward-looking statements contained herein are intended to provide readers with information regarding Keyera, including its assessment of future plans, operations and financial performance related to the Acquisition and the Offering, benefits of the Acquisition, financing of the Acquisition, Keyera's dividend growth and financial position post-Acquisition, Keyera's position in the market and long-term strategy, Keyera's commitment to sustainability post-Acquisition, the combined portfolio of acquired assets and the approvals and timing of the Acquisition. The forward-looking statements contained herein may not be appropriate for other purposes. These forward-looking statements relate to future events or Keyera's future performance. Such statements are predictions only and actual events or results may differ materially. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "plan", "intend", "believe", "expand", "enhance", "accelerate", "deliver", "support", "unlock", "position", "strengthen", "optimize", "extend", "maintain", "create", "preserve" and similar expressions, including the negatives thereof. All statements other than statements of historical fact contained in this document are forward-looking statements. The forward-looking statements reflect management's current beliefs and assumptions with respect to such things as the outlook for general economic trends, industry trends, commodity prices, capital markets, and the governmental, regulatory, and legal environment. In some instances, forward-looking statements contained herein may be attributed to third party sources. Management believes that its assumptions herein are reasonable and that the expectations reflected in the forward-looking statements contained herein are also reasonable based on the information available on the date such statements were made, and the process used to prepare the information. However, Keyera cannot assure readers that these expectations will prove to be correct. All forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events, levels of activity and achievements to differ materially from those anticipated in the forward-looking statements. For information about the risk factors that could cause actual results to differ materially from forward-looking statements, as well as other assumptions used to develop the forward looking statements, please refer to Keyera's filings made with Canadian provincial securities commissions, including Keyera's 2024 Year-End Report dated February 13, 2025 and in Keyera's Annual Information Form, dated March 5, 2025 which can be viewed on SEDAR+ at and on the Keyera website at Readers are cautioned that the foregoing is not exhaustive, that they should not unduly rely on these forward-looking statements and that the forward-looking statements in this news release speak only as of the date hereof. Unless required by law, Keyera does not intend and does not assume any obligation to update its forward-looking statements. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements and management's assumptions and analysis thereof, is available in filings made by Keyera with Canadian provincial securities commissions, which can be viewed on SEDAR+ at SOURCE Keyera Corp. View original content to download multimedia:
