Australian mining firm Resolute Mining announced on Monday that it will pay $160 million to Mali’s ruling junta to resolve a tax dispute. This comes after the company’s CEO, Terence Holohan, and two employees were detained in Mali earlier this month.
The three were held in the capital, Bamako, on November 8, as they visited the country to discuss an undisclosed issue. The Malian government did not provide any details regarding their detention.
Resolute Mining’s non-executive chairman, Andrew Wray, confirmed that the company had settled all claims made by the Malian authorities, including those related to taxes and offshore accounts. The firm will pay $80 million from its cash reserves, with another $80 million to be settled in the coming months.
The company assured that Holohan and his employees are “safe and well,” and that efforts are underway to secure their release. Resolute Mining operates the Syama gold mine in southwestern Mali, holding an 80% stake in the site, with the Malian government controlling the remaining 20%.
This incident is the latest in a series of controversies in Mali’s mining sector, which has faced increasing scrutiny from military authorities since the junta seized power in 2020. In September, four employees of Canadian company Barrick Gold were also detained for several days.
Mali, one of Africa’s largest gold producers, is grappling with widespread poverty and jihadi violence, which has fueled tensions in its critical mining sector. The junta’s growing pressure on foreign mining companies aims to boost government revenues amidst ongoing challenges.
