Randgold’s Mali Mines Open After Nation Shuts Company Offices

  • Gold producer defending against tax claim that led to closings
  • Dispute isn’t expected to hurt mine operations, Investec says

Randgold Resources Ltd.’s mines in the west African country of Mali are still operating normally even after the government shut the company’s offices as a tax dispute escalates.

“The closure does not affect the operations,” Randgold said in a statement Monday. “We have continued to engage with the Malian authorities at the highest level to resolve the remaining issues.”

The company, which operates Mali’s Morila, Loulo and Gounkoto gold mines, said it is defending itself against government tax claims, which are “without merit or foundation.”

Randgold entered arbitration with Mali in 2013 over taxes the company says were wrongfully collected by the nation. The International Center for Settlement of Investment Disputes awarded Randgold $29.2 million, the company said.

“Randgold does not have a history of meekly conceding on such issues, so a resolution may take some time,” Investec Plc said Monday. At the same time, “the government knows not to hurt the golden goose,” so the dispute isn’t expected to affect the mining operations.

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