In a high-stakes tax dispute, Australian mining company Resolute Mining has agreed to pay Mali’s military government $160 million to settle allegations of forgery and public property damage. The agreement comes after Resolute’s British CEO, Terry Holohan, and two colleagues were unexpectedly detained while traveling to Bamako, Mali’s capital, for what was anticipated to be routine negotiations.
Resolute Mining, which operates a gold mine in Mali, announced on Sunday that it would make an initial payment of $80 million from its existing reserves, with the remainder to be paid in installments. This settlement reflects Mali’s ongoing efforts to assert greater control over its gold mining sector, which is a vital part of its economy.
Mali, one of Africa’s largest gold producers, has been actively pursuing increased revenue from foreign mining operators. Last year, the military-led government revised its mining code to raise the maximum stake for state and local investors in mining operations from 20% to 35%. This shift highlights the junta’s broader strategy to restructure international trade and political relationships following the 2021 coup that brought President Col. Assimi Goïta to power.
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The detention of Holohan and his colleagues underscores the growing tensions between Mali’s government and foreign operators in the country. According to reports, their release hinges on Resolute’s adherence to the settlement terms, including signing a memorandum of understanding and completing the initial payment.
The state’s hardline stance on the matter reflects broader efforts to crack down on foreign, particularly Western, mining companies operating within its borders. As Mali seeks to reconfigure its relationships with international partners, this case signals a significant shift in how the country approaches resource management and foreign investment.
Resolute has not disclosed further details about the timeline for the release of its detained executives but confirmed its commitment to fulfilling the settlement obligations. The outcome of this case may serve as a precedent for other foreign investors navigating Mali’s evolving regulatory landscape.
