Resolute Mining, an Australian gold mining company, has agreed to pay $160 million (€152 million) to Mali’s military government to settle a tax dispute after the detention of its CEO and two employees earlier this month. The payment aims to resolve longstanding claims as the West African nation ramps up scrutiny of its lucrative mining sector.
The company’s CEO, Terence Holohan, and two other staff members were detained on November 8 in Bamako, Mali’s capital. The arrests occurred following a meeting with Malian tax and mining authorities. While the government has not clarified the reasons behind the detentions, Resolute confirmed that the charges covered tax, customs duties, and offshore account management issues.
In a statement issued on Monday, the company announced that it had reached a settlement with Mali, agreeing to pay the sum in two parts. Half of the fine will be paid immediately from Resolute’s existing cash reserves, with the remaining amount to be paid in the coming months. The company also reassured stakeholders that Holohan and his colleagues were “safe and well” and that efforts were underway to secure their release.
The three detained staff members are British nationals. The UK Foreign Office has stated it is supporting the individuals and maintaining communication with local Malian authorities to address the situation.
This incident highlights an increasing trend of detentions targeting executives in Mali’s foreign-led mining sector. In September, four employees of Canada’s Barrick Gold were detained for several days. The actions appear to align with the military government’s strategy to exert more control over the industry and extract additional revenue from foreign companies operating in the country.
Mali, one of Africa’s leading gold producers, has undergone significant regulatory changes since its military junta assumed power in 2021. The government has sought to increase mining revenues to bolster state finances. Last year, it rewrote mining laws to raise the maximum stake available to state and local investors from 20% to 35%, signaling a broader shift toward nationalizing profits from the country’s natural resources.
Resolute Mining has been a significant player in Mali’s gold sector, operating the Syama gold mine, a large-scale operation in the country’s southwest. The company holds an 80% stake in the mine, with the Malian government owning the remaining 20%. Syama has long been considered a cornerstone of Resolute’s operations, but the latest dispute underscores the growing risks faced by foreign investors in Mali.
The arrests and subsequent settlement reflect the changing dynamics in Mali’s mining sector. Under military rule, the government has become more assertive in its dealings with international companies, using regulatory disputes and detentions to push for increased contributions.
As foreign firms navigate Mali’s complex regulatory environment, the situation underscores the challenges of operating in resource-rich but politically turbulent regions. Resolute’s agreement to pay such a significant sum highlights the lengths companies may need to go to maintain their foothold in one of Africa’s most prolific gold-producing nations.
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