Mining company Randgold Resources is engaged in a battle over tax with Mali, which has forced the closure of its offices in the capital, Bamako.

The West African miner has said it is disappointed with the way that the Malian government has escalated their long-running tax dispute, to the extent of shutting its offices.

Investors will be pleased to hear that so far the dispute is not affecting the operations of its three gold mines in the country.

Randgold has reminded the government of a disclosure it made to the financial markets in August that it has been "professionally advised that a large proportion of the tax claims received from the state of Mali in respect of its operations in that country are without merit or foundation".

Randgold has dropped a hint that it could take the matter to independent arbitration.

The International Centre for Settlement of Investment Disputes recently awarded $29.2m (£23.5m) plus costs to Randgold's Loulo mining operation for taxes that the tribunal ruled were wrongfully collected by the Malian government.

Randgold's Chief Executive, Mark Bristow, insisted the company has continued to discuss the issue with the authorities at the highest level.

He said: 

    We trust that the parties will return to the negotiating table in the spirit of constructive partnership in order to find a mutually acceptable solution."

Mali owns 20% of Randgold's Loulo and Gounkoto gold mines so any disruption to production would not help the country’s economy.

Randgold has set a target of producing 670,000 ounces of the precious metal from the two operations and the value that could be to the Malian government is highlighted by the fact that the price of gold is still well above $1,000 an ounce.

This morning in London gold was fixed at $1262.10 an ounce.