Randgold continues to engage with Mali govt to resolve tax issues

JOHANNESBURG (miningweekly.com) – LSE-listed Randgold Resources has expressed its disappointment in the Mali government’s decision to close the group's offices in the country's capital, Bamako, in escalation of the government’s long-running tax dispute with the gold major.

The Mali government is alleging that Randgold owes $80-million in unpaid taxes, according to an economy ministry adviser.

"We have continued to engage with the Mali authorities at the highest level to resolve the remaining issues and we trust that the parties will return to the negotiating table in the spirit of constructive partnership that had previously characterised our dealings, in order to find a mutually acceptable solution," said CEO Mark Bristow on Monday.

Randgold said it had disclosed in its August 2016 quarterly report that a large proportion of the tax claims received from the State of Mali in respect of its operations in that country were without merit or foundation. 

Following the appropriate legal process, the miner is strongly defending its position in relation to these claims.

The Mali government says the money is owed by Gounkoto and Somilo, the two companies that work Randgold’s flagship Loulo-Gounkoto project in south-western Mali, as well as Kankou Moussa, a bullion bank that sells gold produced by Randgold’s mines.

Randgold noted that its Morila, Loulo and Gounkoto mines each have legally binding establishment conventions that guarantee fiscal stability, govern the taxes applicable to the companies and allow for international arbitration in the event that a dispute cannot be amicably resolved.

The miner further noted that the International Center for Settlement of Investment Disputes had recently awarded it $29.2-million, as well as costs to Loulo, for taxes found by the tribunal to have been wrongfully collected by the Mali government.