KEY POINTS
- Mali demands $160 million from Resolute in tax dispute.
- Resolute CEO detained in Mali during negotiation talks.
- Military-led government increases pressure on foreign mining firms.
The government of Mali is demanding that Australia’s Resolute Mining Ltd. pay approximately $160 million to settle a tax dispute, following the detention of the gold producer’s CEO, according to sources familiar with the situation.
CEO detained amid Mali’s push for tax settlement
CEO Terry Holohan and two colleagues have been held in Bamako since late last week after Holohan travelled to Mali’s capital for discussions with tax and mining authorities. The detentions come as Mali’s military-led government intensifies pressure on mining companies to renegotiate financial terms. Officials claim that Resolute, which operates the Syama gold mine, owes the state 100 billion CFA francs ($162 million) in alleged back taxes stemming from a sector-wide audit, sources said, speaking on condition of anonymity due to the private nature of the negotiations. The parties are reportedly discussing an agreement under which the company would pay half the amount now and the rest later, according to one source.
Resolute declined to comment on the issue Wednesday. The company said in a Nov. 11 statement that the claims against it were “unsubstantiated” and that it is working with the government toward a resolution.
Mining.com stated that officials at Mali’s finance and mining ministries did not respond to requests for comment.
Military leaders demand bigger cut of mining profits
Resolute had previously secured a mining convention for its Syama operation that is valid through 2029. However, Mali’s junta has been pressuring companies with gold mining operations to renegotiate terms following a law passed last year that increases the state’s share of economic benefits from mining projects. This shift coincides with a 25% rise in the price of gold this year.
Resolute’s stock has plunged by more than 35% this week, reducing its market value to 916 million Australian dollars ($594 million), following the news of Holohan’s detention.
The government has also indicated it may reclaim Barrick Gold Corp.’s Loulo mine permit upon its expiration in 2026. Last week, Barrick CEO Mark Bristow said the company is working toward a “mutually acceptable outcome” with Mali’s authorities.
Meanwhile, Allied Gold Corp. and B2Gold Corp. recently reached agreements with Mali that will govern the future of their Sadiola and Fekola projects. Under these deals, the companies will pay the state about $116 million and $204 million, respectively, according to company statements.
According to mining.com, Mali has been under military rule since 2020 when interim leader Colonel Assimi Goita ousted the elected president, citing failures to address insurgent violence. Since then, mercenaries from the Kremlin-backed Wagner Group have operated in Mali, while European forces and a U.N. peacekeeping mission have withdrawn.
