Mali’s military government has reached a $160 million settlement with Australian mining company Resolute Mining, following the unexpected detention of the company’s British CEO and two other staff members earlier this month.
The company confirmed on Sunday that it will pay Mali’s government $80 million upfront from its existing cash reserves, with the remainder to be paid in the coming months. The dispute, centered around tax issues, was resolved after the three Resolute employees were detained while en route to the capital, Bamako, for what they had expected to be routine negotiations.
Terry Holohan, the CEO of Resolute, along with two other staff members, were arrested by Mali’s military rulers on charges of forgery and damaging public property. The move is widely viewed as an attempt by the junta to exert pressure on the mining company, as part of a broader crackdown on foreign, particularly Western, companies operating in the country.
The detention of the executives is part of Mali’s strategy to secure a greater share of revenue from foreign operators in the gold mining sector. Mali, one of Africa’s largest gold producers, has been seeking to extract more from its lucrative mining industry, and in 2023, President Col. Assimi Goïta’s government passed a new mining law that raised the maximum allowable stake for state and local investors from 20% to 35%.
While Resolute has agreed to the financial settlement, the fate of the detained executives remains uncertain. Reports suggest that their release is contingent on the company’s agreement to sign a memorandum of understanding and complete the initial payment to Mali’s government. The timeline for their release has not been clarified.
This settlement comes amid ongoing tensions between Mali’s military junta and foreign businesses, following the coup that brought the current leadership to power in 2021.
