Resolute Mining, an Australian company operating in Mali, has agreed to pay $160 million to Mali’s military government to settle a tax dispute. This resolution comes after the unexpected detention of the company’s British CEO, Terry Holohan, and two colleagues, who were arrested 10 days ago while traveling to Bamako for what they believed would be routine negotiations.
The company announced on Sunday that it would make an initial payment of $80 million from existing cash reserves, with the remaining amount to be paid in the coming months. Resolute Mining owns a gold mine in Mali, a country that ranks among Africa’s top gold producers.
The arrests have been linked to charges of forgery and damaging public property, with reports suggesting that the detentions served as leverage to force the company into compliance. According to French broadcaster RFI, the employees’ release is conditional upon the signing of a memorandum of understanding and the completion of the first payment.
Mali’s military rulers have been increasingly assertive in renegotiating terms with foreign mining operators, particularly Western companies. The government has pushed for a greater share of income from mining activities as part of broader reforms under the junta, which came to power following a coup in 2021.
Last year, President Col Assimi Goïta enacted a new mining code, increasing the maximum stake for state and local investors in mining operations from 20% to 35%. This crackdown on foreign operators is part of Mali’s broader strategy to reconfigure its political and trade relationships on more favorable terms.
While Resolute Mining has committed to fulfilling the settlement, the timeline for the release of the detained executives remains unclear. This development underscores the ongoing tensions between foreign investors and Mali’s military-led government as the country seeks to assert greater control over its natural resources.