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Barrick considers paying tax early in Mali

Mining
TSX:ABX
13 April 2020 09:11 (EDT)
Barrick Gold Corporation., - CEO, Mark Bristow

Source: Mining Weekly

Barrick Gold (TSX:ABX) has announced a C$2.09 million donation to Mali’s Government, to combat COVID-19 in the West African nation.

The company is also considering moving forward its tax payment for the year to the Malian Government. This would allow the country to better respond to the outbreak. The company is currently negotiating this with the Malian Government.

Barrick has been through this process before, when Ebola broke out in the region in 2014. That experience has been invaluable for the Senior gold miner in dealing with COVID-19.

Barrick’s financial donation consists of a $595,000 spend on medical supplies, to strengthen Mali’s medical infrastructure. The company made the donation through its subsidiary, Randgold.

The specialist medical equipment will strengthen regional infrastructure, particularly around the company’s mines in the region.

Barrick’s CEO, Mark Bristow, said that the company, through Randgold, had a 25-year partnership with Mali’s Government in community health.

“That is why, in addition to extensive preventative measures we have introduced at our mines, we are making this contribution to the Government’s fight against the pandemic.

“Barrick has a strong culture of caring for the welfare of its employees and communities.

“Our financial strength, well-established prevention practices and procedures, and the experience we gained from dealing with two ebola pandemics around our African operations, will stand us in good stead as we face this new unprecedented challenge.

Barrick claims that during Randgold’s 25-year operations in Mali, it contributed some $7.2 billion to the Malian economy. This contribution came through taxes, royalties, salaries, and payments to local suppliers.

During this period, Barrick claims that its own mines paid out $2.7 billion in dividends, taxes, and royalties to the Malian state. This is some 3 times more than the $1` billion in value which Barrick extracted from its mines.

Barrick Gold (TSX:ABX) had a share price of $31.48 at the previous market close.

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