Barrick Gold Corporation has confirmed that it had referred a tax claim by the Senegalese Revenue Authority (SRA) to the International Chamber of Commerce (ICC) for arbitration after numerous attempts to resolve the issue with the government had failed.
The SRA has levied an unaudited assessment totaling US$208 million (calculated as of March 31, 2021) for taxes it claims arose from Barrick’s sale of its interest in the Massawa project to Teranga Gold Corporation last year.
Barrick said the proposed assessment was not per its investment agreement and relevant legislation in place. To resolve the dispute, Barrick has referred the matter to the ICC, which is the dispute resolution forum provided for its agreement with the State of Senegal.
The arbitration process will start when the SRA has appointed its arbitrator. Barrick said in the meantime, it would continue to engage with the government to resolve this matter.
Barrick and its predecessor Randgold have been a partner and investor in the Senegalese mining industry since 1995 and continue to invest in its exploration projects, as well as through its investment in Endeavour Mining Corp.