Australian mining giant Resolute agrees to pay $160M to resolve tax dispute in Mali

Australian gold mining company Resolute Mining has agreed to pay $160 million to Mali’s military-led government, settling a contentious tax dispute that escalated with the detention of the company’s CEO and two other executives.

The British CEO, Terry Holohan, along with two colleagues, was reportedly detained 10 days ago while traveling to Bamako for what was expected to be routine discussions. Their arrest comes amid Mali’s increasing scrutiny of foreign mining firms operating within its borders.

Resolute, which manages a gold mining operation in Mali, announced on Sunday that it will make an initial payment of $80 million from its cash reserves, with the remaining balance to follow in the coming months.

As one of Africa’s largest gold producers, Mali has been seeking to assert greater control over its lucrative mining sector. The arrest of Resolute executives and allegations of forgery and damage to public property are seen as part of a broader strategy by Mali’s junta to secure a larger share of revenues from international mining companies, many of which are Western-owned.

The release of the detained executives reportedly hinges on the signing of a memorandum of understanding and the completion of the first payment. However, the timeline for their release remains unclear.

Since the military government, led by President Col. Assimi Goïta, took power in a 2021 coup, it has aggressively sought to revise trade and political partnerships. A new mining code introduced last year increased the maximum stake for state and local investors in mining ventures from 20% to 35%, signaling a significant shift in the country’s approach to natural resource management.

This case underscores rising tensions between Mali and foreign companies, as the junta takes a more assertive stance to secure economic benefits and reduce reliance on Western interests.

Resolute’s settlement highlights the challenging landscape for international companies operating in Mali, where natural resource governance is becoming increasingly centralized.