Mali's military government has secured a substantial financial settlement from Australian mining firm Resolute Mining, following recent tensions that saw the company's British CEO and staff members detained amid a tax dispute.
Mali Settles Gold Mining Tax Dispute with $160 Million Agreement
Mali Settles Gold Mining Tax Dispute with $160 Million Agreement
Australian Company Resolute to Pay Following Detention of Executives
Mali has solidified its position as a major player in Africa's gold mining sector by reaching a settlement with Resolute Mining, which will pay $160 million to resolve a tax-related disagreement. The resolution comes after Terry Holohan, the British CEO of Resolute, and two other employees were arrested while heading to Bamako for negotiations. The unexpected detainment raised concerns about the motives behind the junta's actions, especially as they are seen as part of a broader government initiative to improve revenue from foreign mining operations.
Mali plans to receive an immediate payment of $80 million from Resolute, funded by the company's cash reserves, with the remaining amount set to be paid over the coming months. The resolution is contingent upon the signing of a memorandum of understanding, which is likely a stepping stone for the release of the detained executives.
Under the military regime's leadership since the 2021 coup, Mali has enacted stricter regulations on foreign mining companies, emphasizing its goal to increase local and state stakes in resource extraction. Recent legislative changes have raised the maximum stake for such investments from 20% to 35%.
As negotiations unfold, the situation highlights the evolving dynamics between Mali and foreign entities, particularly those from Western nations, making international business relations in the region increasingly complex. The actual release date for the detained Resolute employees remains unclear, adding to the uncertainty surrounding foreign investment in Mali's burgeoning mining sector.
