Resolute Mining Executives Released in Mali After $160 Million Settlement

Mali has released three executives from Resolute Mining Ltd., including CEO Terry Holohan, following their detention amid a tax dispute, according to reports from a judicial source and an official from a local gold mine. The executives were freed on Wednesday after Resolute reached a $160 million settlement with the Malian government. The release was facilitated by a memorandum of understanding signed between both parties.

A spokesperson for Resolute stated on Thursday that the company would provide an official update when more information was available and declined to comment on any speculation. In Sydney, Resolute’s shares saw an increase of up to 4.7% on Thursday, though gains were partially trimmed later in the day.

Earlier in the week, Resolute announced that it had made an initial payment of $80 million to the Malian government as part of the settlement. The company plans to cover the remaining balance in the coming months using “existing liquidity sources.” The three executives, including Holohan, had been detained for over a week after Holohan’s arrival in Mali for discussions with the country’s tax and mining officials.

Mali’s stance was that Resolute, which manages the Syama gold mine, owed $161 million to the state. This amount was primarily linked to back taxes identified during a sector-wide audit, according to individuals familiar with the situation.

The country has been under military rule since 2020, following the removal of the elected president by interim leader Colonel Assimi Goita. Goita cited the previous administration’s inability to combat Islamist insurgents as the reason for the takeover. Since the coup, Mali has seen the deployment of mercenaries from the Russia-backed Wagner Group, while European military forces and a United Nations peacekeeping mission have withdrawn from the region.

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