Mali’s military government has reached a $160 million settlement with Australian mining company Resolute Mining over a contentious tax dispute. This agreement comes after the surprise detention of the company’s British CEO, Terry Holohan, and two other employees 10 days ago.
The trio was reportedly arrested while en route to Mali’s capital, Bamako, for what they believed would be routine negotiations. Their release is contingent on Resolute Mining signing a memorandum of understanding and making the initial payment of $80 million, which the company has confirmed will be drawn from existing cash reserves. The remaining $80 million will be paid in the coming months.
Mali, one of Africa’s top gold producers, is intensifying efforts to extract more revenue from foreign mining operators. Last year, the government introduced a new mining code, raising the maximum stake for state and local investors in mining projects from 20% to 35%.
The detentions of Resolute employees highlight the junta’s increasingly assertive stance on foreign involvement in the gold mining sector. Mali’s military rulers accused the company executives of forgery and damaging public property, with some observers describing the move as an attempt to pressure Resolute during ongoing government crackdowns on Western mining companies.
Since seizing power in a 2021 coup, Mali’s junta has been reshaping the country’s political and trade relationships. This settlement and other measures signal a broader push for economic sovereignty in Mali, particularly within its resource-rich gold mining industry.
The British CEO and his colleagues remain in custody, with no clear timeline for their release. Mali’s actions are part of a larger trend across Africa, where governments are demanding greater control and profit-sharing from foreign resource extraction ventures.
