Resolute Mining Settles $160 Million Dispute with Mali Amid Escalating Tensions
Australian gold miner Resolute Mining has agreed to pay Mali’s military-led government $160 million (£126m) to resolve a tax dispute that recently escalated with the detention of the company’s British CEO and two colleagues. The executives, including CEO Terry Holohan, were arrested 10 days ago while traveling to Bamako for what was expected to be routine discussions. Their unexpected detention has brought renewed attention to the strained relationship between Mali’s government and foreign mining operators.
Resolute, which operates the Syama gold mine in Mali, announced it would make an initial payment of $80 million from its cash reserves, with the remaining balance to be paid in the coming months. Reports indicate that the release of the three detained employees hinges on signing a memorandum of understanding and completing the first payment, though the exact timeline for their release remains unclear.
Mali, one of Africa’s largest gold producers, has been tightening its control over the mining sector to secure a greater share of revenues from international companies. The arrest of Resolute’s executives, coupled with charges of forgery and damaging public property, is seen as part of a broader effort by the military government to increase its influence over the country’s lucrative natural resources. Last year, the government introduced a new mining code that raised the maximum stake for state and local investors in mining operations from 20% to 35%.
Since coming to power in a 2021 coup, Mali’s military rulers, led by President Col Assimi Goïta, have taken steps to overhaul the country’s economic and political relationships. This includes adopting a more assertive stance against Western interests in its mining sector, a move that has caused tensions with international investors. The ongoing dispute with Resolute highlights the risks foreign companies face when operating in politically dynamic and resource-rich nations like Mali.
Resolute’s settlement emphasizes the growing challenges for international mining firms in navigating Mali’s shifting regulatory landscape. As the country’s government seeks to assert greater control over its resources, foreign operators are finding themselves under increased scrutiny, with significant financial and operational implications. This development not only underscores the risks of doing business in Mali but also serves as a reflection of the country’s broader efforts to redefine its engagement with global partners
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