In a dramatic turn of events, Mali’s junta has secured a $160 million settlement from Australian company Resolute Mining amid rising tensions over the country’s gold mining sector.
Mali Secures $160 Million Settlement in Gold Mining Dispute with Resolute Mining
Mali Secures $160 Million Settlement in Gold Mining Dispute with Resolute Mining
Mali's military government reaches an agreement with Resolute Mining after detaining key executives over tax issues.
Mali’s military government has successfully negotiated a significant $160 million settlement with Resolute Mining, following the unexpected detention of the company's British CEO, Terry Holohan, along with two other staff members. The arrests occurred just prior to what was anticipated to be routine discussions in Mali's capital, Bamako. Resolute Mining, which operates one of the gold mines in Mali, has confirmed it will pay $80 million immediately, drawn from its existing cash reserves, with the remaining balance to follow in subsequent months.
Mali stands out as one of Africa's premier gold producers, riddled with increasing demands from its military-led government for a larger share of mining revenues from international companies. The situation escalated after Malian authorities detained the executives, alleging charges of forgery and damaging public property, widely perceived as a maneuver to exert pressure on Resolute.
Although the details of the executives' release remain ambiguous, it appears tied to the signing of a memorandum of understanding and fulfilling the initial payment. Since assuming power through a coup in 2021, Mali’s junta has been reshaping its economic landscape and redefining trade relations, particularly concerning foreign investments in mining. A pivotal amendment to the mining code was enacted last year, raising the maximum share for state and local stakeholders from 20% to 35%, highlighting the country’s intent to bolster its financial interest in mining operations.
This evolving landscape illustrates Mali’s aggressive stance on foreign mining companies, potentially affecting future investments in a sector critical to the nation’s economy.
Mali stands out as one of Africa's premier gold producers, riddled with increasing demands from its military-led government for a larger share of mining revenues from international companies. The situation escalated after Malian authorities detained the executives, alleging charges of forgery and damaging public property, widely perceived as a maneuver to exert pressure on Resolute.
Although the details of the executives' release remain ambiguous, it appears tied to the signing of a memorandum of understanding and fulfilling the initial payment. Since assuming power through a coup in 2021, Mali’s junta has been reshaping its economic landscape and redefining trade relations, particularly concerning foreign investments in mining. A pivotal amendment to the mining code was enacted last year, raising the maximum share for state and local stakeholders from 20% to 35%, highlighting the country’s intent to bolster its financial interest in mining operations.
This evolving landscape illustrates Mali’s aggressive stance on foreign mining companies, potentially affecting future investments in a sector critical to the nation’s economy.
