Mali Frees Detained Resolute Mining CEO and Executives After Agreement to Pay $160M Tax Settlement

Resolute Mining, an Australian gold miner, has confirmed the release of its Chief Executive Officer, Terence Holohan, and two senior executives detained in Mali earlier this month. The individuals had been held in Bamako to discuss the company’s business practices with Malian authorities.

In a statement on Thursday, Resolute announced that the detained executives had been released from the Economic and Financial Centre of Bamako and had safely departed the country. The company assured stakeholders that all three employees were safe and well.

The detentions were linked to a tax dispute with the Malian government. Mali had accused the company of forgery and damage to public property, but Resolute denied these allegations. The company agreed to a $160 million settlement with the government as part of the resolution. An initial payment of $80 million was recently made from existing cash reserves, with the remaining $80 million scheduled for payment in the coming months.

The settlement was formalised in a memorandum of understanding early this week. It addresses all outstanding claims against Resolute, including those related to tax, customs levies, and the management of offshore accounts. Resolute holds an 80 per cent stake in the Syama gold mine in Mali, with the Malian government owning the remaining 20 per cent.

The dispute results from increasing scrutiny of foreign mining firms in Mali under the current military-led administration. Recent reforms have raised the required state and private ownership stakes in mining projects from 20 per cent to 35 per cent. This is owing to Mali’s mining industry being a cornerstone of its economy.

The junta-led government is leveraging several strategies to boost economic growth. The country is trying to diversify its exports, focusing on essential products like cotton and gold. Mali is also looking to develop its natural resources, particularly with plans to start lithium production in 2024, which could help the economy grow.

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