Randgold's offices shut down by Mali government over tax row

Randgold said it was “strongly defending its position” as it has been advised that a large proportion of the tax claim from the Malian government is “without merit or foundation”.

The closure will not affect operations at its Morila, Loulo and Gounkoto mines, which the company said all have “legally binding establishment conventions which guarantee fiscal stability”, tax allocation and allows for international arbitration if there is a dispute which cannot be resolved.

Recently, the International Centre for Settlement of Investment Disputes awarded roughly $29.2m to Randgold for taxes found by the tribunal to have been wrongfully collected by the Malian government regarding the Loulo mine.

Chief executive Mark Bristow, 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."

Randgold has in the past emphasised the mines' contribution to Mali's economy, employing 4,800 people and supplying between 7% and 11% of the country's annual GDP, with Loulo having already contributed $2.3bn, Gounkoto $600m and Morila $2bn in the form of royalties, taxes, salaries, payments to local suppliers and community investments.