Mali to receive $160 million from Australian miner following executive detentions in tax dispute

An Australian mining firm, Resolute Mining, has stated its commitment to pay $160 million (£126 million) to Mali’s military government to resolve a tax disagreement. This development comes after the company’s British chief and two other employees were unexpectedly held ten days prior. Reports indicate that Terry Holohan and his colleagues were apprehended while en route to Bamako, the capital city, for what they anticipated would be standard negotiations. Resolute, which operates a gold mine in Mali, announced on Sunday that it would disburse $80 million immediately from its existing cash reserves, with the remainder to follow in the upcoming months. Mali is recognized as one of Africa’s leading gold producers. The nation is striving to secure a larger share of revenue from foreign entities operating in its mining sector. The timeline for the release of the three Resolute employees remains uncertain. According to a report by the French broadcaster RFI, conditions for their release stipulated that they must “sign the memorandum of understanding and complete the initial payment.” Mali’s military authorities detained the three Resolute executives on allegations of forgery and causing damage to public property. This action is widely viewed as an attempt to pressure the Australian company amidst an ongoing governmental crackdown on foreign, primarily Western, mining companies in the West African country. Since seizing power in a 2021 coup, Mali’s junta has aimed to reconfigure its political and commercial relationships with international partners. Last year, President Colonel Assimi Goïta enacted a new mining code, which increased the maximum ownership stake for state and local investors from 20% to 35%.