R.B
JF-Expert Member
- May 10, 2012
- 6,296
- 2,575
Randgold Resources, the FTSE 100 gold miner, has been forced to close its offices in Mali due to a tax dispute with the Malian government.
The company said it was “disappointed” by the move, but said the closure would not affect operations at its three mines in the country. It also confirmed that it is “strongly defending its position” in response to the government’s claims.
Randgold’s operations in Mali account for between 7 and 11 per cent of the country’s annual economic output, and the company has been fighting the government over tax claims for more than three years.
Earlier this year the International Center for Settlement of Investment Disputes awarded the company $29.2m related to taxes from one mine, but Randgold says it is owed significantly more, with “a large proportion” of the $231m claimed by the government “without merit or foundation.”
Mark Bristow, Randgold chief executive, said:
We have continued to engage with the Malian 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.
The company said it was “disappointed” by the move, but said the closure would not affect operations at its three mines in the country. It also confirmed that it is “strongly defending its position” in response to the government’s claims.
Randgold’s operations in Mali account for between 7 and 11 per cent of the country’s annual economic output, and the company has been fighting the government over tax claims for more than three years.
Earlier this year the International Center for Settlement of Investment Disputes awarded the company $29.2m related to taxes from one mine, but Randgold says it is owed significantly more, with “a large proportion” of the $231m claimed by the government “without merit or foundation.”
Mark Bristow, Randgold chief executive, said:
We have continued to engage with the Malian 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.