Shares of Australian Mining Company Fall 32% After Mali Detains CEO and Two Executives on Corruption Charges

Shares of Resolute Mining, an Australian gold mining company, dropped by 32 per cent on Monday. This sharp decline marks the company’s worst trading day in 16 years, according to a Reuters report.

Resolute’s shares declined following the detention of its CEO, Terence Holohan, along with two other senior executives by Mali’s military-led government.

The executives were taken into custody at a hotel in Mali’s capital, Bamako, on Friday. They were later transferred to a specialised anti-corruption centre set up by Mali’s government. A Resolute representative stated the executives were questioned over alleged forgery and damage to public property. The company, however, denies these accusations and says it has fully cooperated with Malian authorities.

Mali is one of Africa’s top gold producers; as such, the country is intensifying its efforts to gain more revenue from foreign mining operations. The government, which came to power in a 2020 coup, has begun renegotiating existing mining contracts. A recent change in mining laws now requires both state and private stakes in mining projects to increase from 20 per cent to 35 per cent.

Resolute holds an 80 per cent stake in the Syama gold mine in southwestern Mali and operates in partnership with the Malian government, which has the remaining 20 per cent. The Syama mine is expected to produce between 205,000 and 215,000 ounces of gold in 2024. Resolute also runs the Mako mine in Senegal and is exploring additional mining opportunities in Mali and Guinea.

The crackdown comes shortly after another case involving foreign miners in Mali. In September, four senior employees of Canadian mining giant Barrick Gold were detained briefly. Following their release, Barrick agreed to settle by paying about $83 million, though Malian authorities later accused the company of not fully meeting its commitments and threatened further action.

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