Australian mining company Resolute Mining has announced that it has agreed to pay $160 million to the Malian government following the unexpected detention of its CEO and two other executives.
The executives, including British CEO Terence Holohan, were detained earlier this month in Bamako after travelling to the capital for what they believed were routine negotiations with Mali’s ruling junta.
Resolute stated that it would provide $80 million from its existing cash reserves immediately, with a second $80 million instalment to follow in the coming months.
Mali’s junta, which seized power in 2021, has been seeking to reclaim a larger share of revenues from foreign gold mining companies operating in the country.
The timeline for the release of Holohan and his two unnamed colleagues remains unclear. However, Resolute Mining confirmed that the executives were safe and well and that the company was collaborating with the government to finalise their release.
This incident marks the second time in recent months that foreign mining executives have been detained in Mali. In September, four employees of Canadian mining giant Barrick Gold were held briefly before being released, after their company reached a settlement and paid $81 million to the government.
Mali, one of Africa’s leading gold producers, depends heavily on the precious metal, which accounts for 25% of its national budget and 75% of export earnings. Despite its vast gold wealth, the country remains one of the world’s poorest, grappling with political instability, insurgencies, and economic challenges.
Resolute Mining owns 80% of the Syama mine in northwestern Mali, with the remaining 20% controlled by the Malian government. The company also operates a gold site in Senegal and conducts exploration activities in Mali, Senegal, and Guinea.
The $160 million payment represents a significant financial challenge for Resolute Mining, which reported cash holdings of $157 million in its latest financial statements.
Since the junta took control, Mali has severed ties with France, its former colonial power, and sought closer political and military cooperation with Russia. The junta’s hardline stance on foreign mining firms reflects its broader agenda of consolidating control over national resources amidst a backdrop of ongoing insurgencies by Al-Qaeda and its affiliates.
