Australian mining company Resolute has signed a $160 million agreement with the Malian government following the detention of its executives over tax-related issues.
The CEO and two employees of the Australian company Resolute Mining were released from detention in Mali on Wednesday. A judicial source and a local gold mine official stated that the company’s release followed a $160 million agreement with the government.
The three individuals had been detained earlier this month after traveling to the capital, Bamako, for what they thought were routine meetings with the government. Instead, CEO Terence Holohan and two colleagues were unexpectedly detained for questioning.
A judicial source confirmed, “The three executives of the Australian company were released after a memorandum of understanding was signed between both parties.”
Mining Stake
The military leaders who took control of Mali have promised to recover gold mining revenues from foreign companies operating in the country.
According to the company’s website, Resolute owns 80% of a subsidiary that holds the Syama mine in the northwest, with the Malian state controlling the remaining 20%.
A Malian official from the Syama mine confirmed, “The CEO and the other two company officials have been released.”
Cash Payment
In recent months, this marks the second time that employees of a foreign mining firm have been detained.
The $160 million payment represents a significant hurdle for Resolute, which currently has $157 million in cash reserves according to its financial statements.
Resolute announced it will pay the Malian government $80 million from its “current cash reserves,” with another $80 million to be paid in the “coming months.”
While Mali is one of Africa’s leading gold producers, it also ranks among the world’s poorest nations.
