Gold mining company is forced to pay Mali £126million over tax dispute 10 days after Brit CEO was detained during routing negotiations
A gold mining company has been forced to pay Mail £126million over a reported tax dispute, ten days after its British CEO was detained.
A gold mining company has been forced to pay Mail £126million over a reported tax dispute, ten days after its British CEO was detained.
Resolute Mining said it would pay £126million ($160 million) to Malis ruling junta to resolve a tax dispute, after the companys British CEO Terence Holohan and two other employees were detained in the capital city of Bamako on November 8.
The three travelled to Bamako for what they thought were routine negotiations with the junta. Instead, they were unexpectedly detained for questioning.
The Mali government did not say why they were detained.
Andrew Wray, the companys non-executive chairman, said in a statement that all claims against the company made by Malian authorities, including those related to tax, customs levies, maintenance and management of offshore accounts are settled.
Resolute Mining said it would pay £126million ($160 million) to Malis ruling junta to resolve a tax dispute, after the companys British CEO Terence Holohan (pictured) and two other employees were detained in the capital city of Bamako on November 8
Resolute mining has been working for years at Malis Syama gold mine (pictured), a large-scale operation in the countrys southwest
The company will pay Mali £63million ($80million) from existing cash reserves, with an additional payment of £63million ($80million) in the coming months, he added.
Resolute said Holohan and two employees were safe and well, and that it was working with Malis authorities for their release.
It was not immediately clear when Holohan and his two unnamed colleagues might be released.
Resolute, which is an Australian company, has been working for years at Malis Syama gold mine, a large-scale operation in the countrys southwest.
It holds an 80 per cent stake in mine, while the Malian government holds the remaining 20 per cent.
The arrest is the latest controversy in Malis foreign-dominated and crucial mining sector, increasingly scrutinized by the military authorities.
It was the second time in recent months that employees of a foreign mining firm were detained after four employees of Canadian company Barrick Gold were held for several days in September.
Barrick Gold said it had reached an agreement with the state and in October paid £64million (50 billion CFA Francs).
Mali is one of Africas leading gold producers, but has struggled for many years with jihadi violence and high levels of poverty and hunger (file image of junta Lt. Col. Assimi Goita, centre, who was named as Malis interim president in 2021)
Mali is one of Africas leading gold producers, but has struggled for many years with jihadi violence and high levels of poverty and hunger.
The country is embroiled in a political, security and economic crisis, and since 2012 has been battling Al-Qaeda and Islamic State armed groups, as well as a separatist insurgency in the north.
The military seized power in 2020 and since then the junta has placed foreign mining companies under growing pressure as it seeks to shore up the governments revenues.
Gold contributes a quarter of the national budget and three-quarters of export earnings.
The £126million ($160million) payment is a significant hurdle for Resolute, which according to financial statements currently holds £124million ($157million) in cash.
The Australian company also owns a gold production site in Mako in neighbouring Senegal, and has other exploration operations in Mali, Senegal and Guinea.
After the 2021 coup, Mali broke off relations with former colonial ruler France, which had been helping to fight jihadist insurgents in the north, and turned to Russia for political and military assistance.
