Australian gold miner Resolute Mining has agreed to pay Mali’s military-led government $160 million to resolve a tax dispute following the detention of its British CEO, Terry Holohan, and two colleagues.
The executives were arrested 10 days ago while traveling to the capital, Bamako, for what they expected to be routine discussions. Their detention occurred amid increasing scrutiny of foreign mining firms in Mali.
Resolute announced on Sunday that it would make an initial payment of $80 million from its cash reserves, with the remaining $80 million to be paid in the coming months.
Mali, one of Africa’s top gold producers, has been tightening control over foreign mining firms to secure a larger share of mining revenues. The charges of forgery and damaging public property against the Resolute executives are seen as part of the military government’s efforts to extract more from international companies.
The release of the executives is reportedly contingent on the signing of a memorandum of understanding and the initial payment, though the timeline for their release remains unclear.
Since seizing power in a 2021 coup, Mali’s military government, led by President Col Assimi Goïta, has sought to reshape the country’s trade and political relationships. A new mining code introduced last year raised the maximum stake for state and local investors in mining operations from 20% to 35%.
This dispute highlights the growing tensions between Mali and foreign mining companies as the military government seeks to assert greater control over its valuable resources.