Resolute Mining, an Australian gold mining company, has agreed to pay $160 million to Mali’s military government to resolve a tax dispute.
This follows the unexpected detention of its CEO and two senior staff members in Bamako earlier this month.
The three executives, including CEO Terence Holohan, were arrested on November 8 while traveling to Mali’s capital for what they believed would be routine negotiations. Malian authorities accused the company of forgery and damaging public property. The junta has described the arrests as a pressure tactic amid an ongoing crackdown on foreign-dominated mining operations.
In a statement on November 18, Resolute’s non-executive chairman, Andrew Wray, confirmed the settlement, stating:
“All claims against the company made by Malian authorities, including those related to tax, customs levies, maintenance, and management of offshore accounts, are settled.”
Resolute has committed to making an initial payment of $80 million from its existing cash reserves, with the remaining $80 million to follow in the coming months.
According to the company, the detained employees, including Holohan, were reportedly in good health. Their release, however, is contingent upon signing a memorandum of understanding and completing the first payment, per reports from French broadcaster RFI.
The Malian government has not publicly commented on the reasons for the detention but has ramped up scrutiny of foreign operators in the mining sector.
Mali, one of Africa’s top gold producers, has tightened control over its mining industry since the military junta seized power in a 2021 coup. In 2022, President Col. Assimi Goïta signed a new mining code increasing the government’s maximum stake in mining projects from 20% to 35%, seeking to boost state revenue from foreign operators.
Resolute, which operates the Syama gold mine in Mali, holds an 80% stake in the project, while the Malian government controls the remaining 20%.
The crackdown on Western firms has also affected other companies. In September 2024, four Canadian mining giant Barrick Gold employees were detained for several days in Mali under similar circumstances.
Mali’s junta has faced international isolation and sanctions since its 2020 and 2021 coups. The country, which struggles with widespread poverty and jihadist violence, has placed increasing pressure on foreign firms operating in its lucrative gold mining sector.
Resolute’s settlement is the latest example of the military government’s effort to extract greater value from international operators.
Resolute said it was committed to its operations in Mali but acknowledged the challenges of navigating the current political environment.
“Our priority remains the safety of our personnel and ensuring continued production at Syama,” said Wray.
The detained executives are expected to be released once the settlement conditions are fulfilled, but the incident shows growing risks for foreign companies operating in Mali’s mining sector.
