Australia’s Resolute Mining has taken decisive action to address a tax dispute with the Malian government, agreeing to a $160 million settlement following the detention of its CEO Terence Holohan and two other employees earlier this month.
The gold miner announced on Monday that it has already made an initial payment of $80 million from its existing cash reserves and will cover the remaining amount in installments over the coming months using other liquidity sources.
The news of the settlement came alongside a sharp drop in Resolute’s stock price, with shares falling by as much as 14.3% to A$0.345 in early trading—its lowest since March 1.
Employees Detained in Mali
The detained employees were in Bamako, Mali’s capital, to engage in discussions with mining and tax authorities regarding the company’s operations, Resolute revealed last week. While they remain in detention, the company assured stakeholders that the individuals are “safe and well” and are receiving support from UK and international diplomatic representatives. Efforts to secure their release are ongoing in collaboration with the Malian government.
Gold Sector Tensions in Mali
Mali, a leading gold producer in Africa, has been increasing its focus on maximizing income from the mining sector. The detention of mining executives has become a recurring issue, impacting not only Resolute but also other companies, including Canada’s Barrick Gold.
Resolute’s Syama gold mine in Mali is a cornerstone of the company’s operations, contributing nearly two-thirds of its total gold sales of 329,061 ounces in 2023. Resolute holds an 80% stake in the mine, with the Malian government owning the remaining 20%.
Despite the ongoing dispute, the company confirmed that activities at the Syama site remain unaffected, stating:
“Operations on site continue as normal and have not been impacted.”
This development highlights the growing challenges faced by international mining companies operating in Mali as the government pursues stricter revenue measures in the lucrative gold sector.
