Australian gold mining company Resolute Mining has agreed to pay $160 million to the government of Mali following the detention of its CEO, Terence Holohan, and two other executives earlier this month. The three British nationals were detained on November 8 in Bamako after a meeting with government officials over tax disputes and other financial claims.
Resolute, headquartered in Perth, disclosed on Monday that it has already paid $80 million from its cash reserves of $157 million and will complete the payment with another $80 million in the coming months. The agreement reportedly resolves all outstanding claims by the Malian government, including those related to taxes, customs levies, and the management of offshore accounts.
In a statement, Resolute said it is collaborating with Malian authorities to finalize procedural steps necessary for the release of Holohan and the two employees. The company also assured that the detained staff members are being treated well and receiving support from the UK and other diplomatic representatives.
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This dispute highlights ongoing challenges between Mali’s military-led government and international mining companies. Last year, Mali revised its mining laws to demand increased state and local ownership in the industry, aiming to extract more revenue from foreign operations.
In a similar incident in September, four local employees of Barrick Gold, the world’s second-largest gold miner, were detained for several days, signaling a pattern of escalating tensions. Analysts, like Beverly Ochieng of Control Risks, have referred to these incidents as “hostage-taking,” suggesting a deliberate strategy to pressure international companies into compliance.
Mali’s mining industry operates against a backdrop of political instability and conflict. Since the 2011 Libyan civil war, the Sahel region has faced increased jihadist activity and uprisings by Tuareg rebels demanding independence. The country has experienced multiple coups, including one in 2020 and another in 2021, which saw Colonel Assimi Goïta rise to power after deposing another military leader.
Despite these challenges, Mali remains one of Africa’s leading gold producers, making the industry a critical economic pillar. However, the recent detention of Resolute’s executives underscores the growing difficulties faced by international investors navigating Mali’s volatile political and regulatory environment.
