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Australian Mining Company Resolute Mining Settles Tax Dispute with Mali

An Australian mining firm, Resolute Mining, has agreed to settle a tax disagreement with Mali’s military government, committing to pay $160 million (£126 million) following the unexpected detention of its British CEO and two other employees.

Terry Holohan, the CEO, along with his colleagues, was apprehended while en route to Bamako, the nation’s capital, for what was anticipated to be a routine negotiation session.

In a recent announcement, Resolute revealed that it would disburse $80 million immediately from its available cash reserves, with the remaining payment scheduled for the coming months.

Mali is recognized as one of Africa’s leading gold producers and has been actively pursuing a larger share of revenue from international mining operators as part of its strategy to bolster national income.

The timeline for the release of the detained Resolute employees remains uncertain. Reports indicate that a prerequisite for their release includes signing a memorandum of understanding and completing the initial financial payment.

Mali’s military junta has charged the three Resolute executives with forgery and damaging public property. This move is widely interpreted as part of a broader clampdown on foreign mining interests, particularly those from Western nations, amid ongoing tensions within the sector.

Since seizing power in a coup in 2021, Mali’s military leadership has sought to redefine its political and economic ties with foreign entities. In line with this strategy, last year, President Col Assimi Goïta enacted a new mining code that raised the maximum investment stake for state and local stakeholders from 20% to 35%.

Source
www.bbc.com