Mali, one of Africa's premier gold producers, has successfully negotiated a $160 million settlement with Resolute Mining, following the unexpected detention of British businessman Terry Holohan and his colleagues.
Mali Secures $160 Million Settlement in Gold Mining Dispute Amid Detentions
Mali Secures $160 Million Settlement in Gold Mining Dispute Amid Detentions
Mali's military government reaches a significant financial agreement with Australian mining firm Resolute after detaining key executives.
Mali's military government has made headlines after announcing it will receive $160 million from Resolute Mining to resolve a tax dispute. The situation escalated after the company's British CEO, Terry Holohan, and two other staff members were taken into custody while en route to Bamako for what was thought to be routine negotiations. In a statement made on Sunday, Resolute informed that it would disburse $80 million immediately from its available cash reserves, with the remainder to be paid in installments.
Mali is leveraging its status as one of Africa's leading gold producers to reclaim a greater share of foreign mining revenues and is seeking stricter terms from foreign operators. The exact timeline for the release of the detained Resolute executives remains uncertain, with reports suggesting that their freedom is contingent on signing a memorandum of understanding and executing the initial payment.
The arrests are viewed as part of Mali's broader strategy by its military rulers to renegotiate its economic relationships with foreign entities following their rise to power in a coup in 2021. Last year's introduction of a new mining code allows the state and local investors to increase their stake from 20% to 35%, further solidifying Mali's intent to control its rich mining resources.
