Barrick GoldI am in no way trying to talk anyone into investing in EDV or whatever, but I do take exception with people stating that Mali stole gold from Barrick, that the West African Govs are all corrupt, and that Barrick is in any way in the right with their dispute with the Mali Gov.
Yes West African countries have been raising the amount of money they expect to receive from gold mining operations in their countries. They have successfully reached agreements with Endeavour, G2Gold, and Resolute to name three. Those three companies have said that they accept the new rates. Barrick however plays a different game. Their history is one of not wanting to pay taxes. The Loulo - Gounkoto complex is very important to Barrick - 14% of global gold production which is produced at low cost. But it is also important to Mali. Mali is a very poor country , partly because of the actions of the French over centuries when it stole so much from the country . (France only abolished slavery in West Africa in 1905!). So the money that Barrick owes to the country - $500 million or so, is critical to the countries finances. So Barrick plays this cat and mouse game of refusing to pay tax owed, and then threatening to close the mine.
Barrick was warned in early January that if it didn't come clean on tax owed Mali would seize gold. Kind of like what the CRA would do to you if you refused to pay tax for a long time. The value of the gold will go against taxes owed, and it is almost like Barrick planed to pay the tax this way.
And now all miners in West Africa will suffer because of Barrick's actions.
As far as corruption goes, I think Niger is a good example. For years the French mined uranium in Niger. They corrupted the so called democratic government ( elections were fixed with much help from the French) and basically stole the uranium from the country, while enriching a few i This was a familiar senario in Africa, and lots of other palces for sure. Recently the military took control of the Niger Gov and they seized one French uranium mine and have kicked out the French and US military which were used to maintain control of the country. Similiar things are happening throughout W Africa.
The knee jerk reaction from so many is that the governments in Africa, and anywhere else that don't bow to western powers, are corrupt. No doubt there is some corruption - I have never seen anything humans have done that doesn't have some of that, but it really does appear that the military in these countries is trying to take back control of their countries and get a proper deal for their people.
Mali or BF etc. has no intention to take over the gold mines. They have had good faith negotiations with the gold companies as they go about increasing the amount they receive. It very much appears that the government of Mali, BF etc. understand the limits on their take, and their desire is to work with the gold companies. Endeavour, and B2 Gold, two I am familiar with, have always been treated well , getting permits quickly etc. It really is a shame that Barrick is able to poison so many people against the West African countries. It would be hugely helpful if Barrick would make some kind of deal to get out of W Africa - but no one can really afford to buy them out.