Mining Multinationals are Learning to do Business with Juntas
Barrick Gold, the world’s second largest gold producer, has reached an agreement with the Mali government to end nearly two years of dispute that halted mining operations and accounted for up to 10% of the country’s GDP. Barrick initially faced $5.5 billion in tax demand and will now pay $438 million. In exchange, Mali will release four prison-sentenced employees and return to the seized gold mine. CEO Mark Bristow remains optimistic, emphasizing dialogue in Africa’s volatile regulatory landscape. The resolution highlights the broader challenges facing mining companies in politically unstable areas where governments increasingly seek control of natural resource income.
source: economist
