Randgold's Mali offices closed in tax dispute

Randgold Resources said today the government of Mali had closed its offices in the capital Bamako over a USD 230 million tax claim that the South African gold producer is contesting.
In a statement, Randgold Resources said it was disappointed at Bamako's move but insisted that "the closure does not affect the operations of its three mines in Mali."
The London- and New York-quoted firm added it had been professionally advised "that a large proportion of the tax claims received from the state of Mali in respect of its operations in that country are without merit or foundation.
"Following the appropriate legal process, it is strongly defending its position in relation to these claims."

Randgold also noted that the International Center for Settlement of Investment Disputes had recently awarded USD 29.2 million plus costs to its Loulo operation for taxes which the centre found the Malian government had wrongly collected.
"We have continued to engage with the Malian authorities at the highest level to resolve the remaining issues," Randgold Resources chief executive Mark Bristow said in urging a constructive approach to bring about a "mutually acceptable solution."
Mali is of strategic importance for the group, which also has a gold mine in Ivory Coast and the Democratic Republic of Congo and which last year posted net profits of USD 189 million on sales of USD 1.4 billion.

Last year, Bristow hailed the mine at Loulo and neighbouring site of Gounkoto as being of major benefit to the Malian economy, indicating the complex had contributed some USD 700 million "in taxes, royalties and dividends" to the state, while injecting "an additional USD 1.9 billion into the economy" through supplier and contractor payments and employee wages.