Mali Pressures Resolute Mining Amid Tax Dispute and CEO Detention

Mali is demanding approximately $160 million from Australia’s Resolute Mining Ltd. to settle a tax dispute, following the recent detention of the gold producer’s CEO, according to individuals familiar with the situation.

Terry Holohan, Resolute’s Chief Executive Officer, along with two of his colleagues, has been held in Bamako, Mali’s capital, since late last week. Holohan had traveled to the city for discussions with the country’s tax and mining officials. The detention comes amid increased pressure from Mali’s military government—Africa’s third-largest gold producer—on mining companies to renegotiate economic agreements.

According to sources, the Malian government believes that Resolute, which manages the Syama gold mine, should pay 100 billion CFA francs (about $162 million) to address a dispute largely centered around alleged unpaid taxes identified in a sector-wide audit. One source mentioned that both parties have been negotiating a potential settlement, proposing that half the payment be made now and the remainder at a later date.

Following news of Holohan’s detention, Resolute’s shares dropped by as much as 4.1% in Sydney on Thursday, extending its losses to over 35% since the detention became public. The decline has reduced the company’s market value to around $574 million.

Resolute issued no comments on Wednesday. On November 11, the Perth-based company released a statement describing the claims against them as “unsubstantiated” and noted that negotiations with the Malian government were ongoing.

Resolute had previously arranged a “convention” for the Syama mine, effective until 2029. However, the nation’s ruling junta has increased pressure on gold-mining firms after passing a law last year that raises the state’s share of economic returns from mining operations. This shift coincides with a 25% rise in gold prices over the past year.

The government has also issued a warning to Barrick Gold Corp. that its permit for the Loulo mine, set to expire in 2026, could be reclaimed. Last week, Mark Bristow, CEO of the world’s second-largest gold producer, mentioned that negotiations for a “mutually acceptable resolution” with Malian authorities were ongoing.

Meanwhile, Allied Gold Corp. and B2Gold Corp. have both reached new agreements regarding the future of their Sadiola and Fekola projects. According to company statements, the agreements will result in payments of approximately $116 million and $204 million, respectively, to the Malian government.