Shares in Resolute Mining, an Australian gold company, fell by as much as 32% to A$0.455 on Monday, November 11, 2024, marking their worst performance since October 2008.
This drop follows the detention of three company officials in Mali after they attended talks with the government regarding “claims made against” Resolute. The company’s non-executive chairman, Andrew Wray, described the detentions as “unexpected.”
Mali, a major gold producer in Africa, has recently introduced a revised mining code to increase the government’s share of gold revenues.
The new code, introduced by interim President Assimi Goïta, allows the state to acquire up to 30% ownership in gold projects and removes specific tax and customs exemptions.
This move is part of Mali’s broader strategy to strengthen ties with Russia while reducing reliance on Western allies such as France, particularly in the wake of the junta’s 2020 coup.
The arrests occur against a backdrop of increasing scrutiny of the mining sector, which is dominated by foreign firms. This is the second such incident in two months; in September, the Malian authorities also detained four employees of Barrick Gold, a Canadian company.
Resolute Mining, which operates the Syama gold mine, has denied any wrongdoing, stating that it has adhered to all local laws and regulations.
The ongoing tensions reflect broader shifts in Mali’s political landscape, as the government seeks to increase its control over the mining sector and reduce foreign influence.
