Mali Releases Resolute Mining Executives Following $160 Million Tax Settlement
Mali has released three executives from Resolute Mining Ltd., including CEO Terry Holohan, after detaining them in connection with a tax dispute, Agence France-Presse reported, citing judicial and mining sources.
The executives were freed on Wednesday after Resolute finalized a $160 million agreement with the Malian government. According to reports, the release followed the signing of a memorandum of understanding between the two parties.
Resolute has not provided detailed comments, stating it will announce updates as they become available and refraining from addressing speculation, a company spokesperson said on Thursday.
Following the news, Resolute’s shares climbed as much as 4.7% in Sydney trading before settling back slightly.
Background of the Dispute
Earlier this week, Resolute announced it had made an initial payment of $80 million to Mali’s government and would settle the remaining amount using its existing liquidity in the coming months. Holohan and his colleagues had been detained for over a week after he traveled to Mali for meetings with tax and mining officials.
The dispute centered around claims by Malian authorities that Resolute, which operates the Syama gold mine, owed 100 billion CFA francs ($161 million) in back taxes following a sector-wide audit.
Political Context
Mali has been under military rule since 2020, when Colonel Assimi Goita overthrew the country’s elected president, citing the government’s failure to address a growing Islamist insurgency. Since then, the country has turned to new alliances, including the deployment of Russian Wagner Group mercenaries, while European forces and a United Nations peacekeeping mission have exited the region.
Resolute’s swift resolution of the tax dispute underscores the complexities of operating in Mali’s current political and economic environment, where negotiations with the military government often play a pivotal role in maintaining business operations.
