Australian mining company Resolute Mining has announced plans to settle a $160 million tax dispute with Mali’s military government, following the unexpected detention of its British executive and two other staff members, Terry Holohan included, 10 days prior.
Reports indicate that Holohan and his colleagues were seized during travel to Bamako, the capital city, on an unofficial visit for what was anticipated to be standard negotiations.
Resolute, which operates a gold mine in Mali, revealed on Sunday that it would begin paying $80 million immediately from its liquid assets, with the remaining sum to be disbursed over the next few months.
Mali is among the continent’s leading gold producers, and the country is in the process of securing a larger share of revenue from foreign operators within its mining sector.
The situation regarding the release of the three Resolute employees remains unclear, although part of the terms for their release include signing a memorandum of understanding and completing a preliminary payment, as reported by the French broadcaster RFI.
The detainees were allegedly arrested under charges of forgery and vandalism of public property, which are seen as a form of intimidation to coerce Resolute into acquiescing to Mali’s authorities in the wake of a broader crackdown on foreign, predominantly Western mining companies in the country since the coup in 2021.
Under the interim government established after the military intervention, President Col Assimi Goïta has initiated efforts to restructure Mali’s diplomatic and trade relations with foreign nations. Notably, last year, President Goïta signed into effect a new mining law that raised the cap on the stake of state and local investors in the mining sector from 20% to 35%.
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