Australian gold miner Resolute Mining has agreed to pay Mali’s military-led government $160 million to settle a tax dispute, following the detention of its British CEO, Terry Holohan, and two colleagues. The trio had been arrested 10 days earlier while en route to Bamako for what they believed would be routine discussions, amid increasing scrutiny of foreign mining companies in the West African nation.
Resolute, which operates a gold mine in Mali, announced it will make an initial payment of $80 million from its cash reserves, with the remaining balance to be paid in the coming months. Reports indicate the employees’ release is contingent on the signing of a memorandum of understanding and completing the first payment, though the exact timeline for their release remains unclear.
Mali’s Drive for Increased Mining Revenues
As one of Africa’s top gold producers, Mali has been tightening regulations on foreign mining firms to secure a greater share of profits. The arrest of Resolute executives, alongside charges of forgery and damaging public property, reflects the junta’s broader strategy to assert control over the lucrative mining sector, particularly targeting Western companies.
In 2022, Mali’s government introduced a new mining code that increased the maximum stake for state and local investors in mining projects from 20% to 35%. These measures align with the junta’s efforts to bolster revenue and reconfigure the country’s economic relationships since taking power in 2021.
Tensions with Foreign Partners
Under President Col Assimi Goïta, Mali has sought to redefine its partnerships, taking a more assertive stance against foreign operators in key sectors. The settlement with Resolute underscores the growing challenges faced by international firms operating in Mali, as the government seeks to assert greater sovereignty over its natural resources.
This high-profile case highlights the complex dynamics between Mali’s military rulers and international businesses, with foreign companies increasingly navigating a tougher regulatory and political landscape.
