The settlement comes amid a crackdown on foreign mining operations, as Mali reasserts control over its vast mineral resources.
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 after detaining British executives from the Australian company.
Mali's military government has announced a significant resolution to a tax dispute with Australian mining firm Resolute Mining, leading to an agreement worth $160 million. This development follows the unexpected detention of the company's British CEO, Terry Holohan, along with two other staff members, during what was anticipated to be routine discussions in Bamako.
Effective immediately, Resolute will part with $80 million from its existing cash reserves, committing to the remaining amount within the upcoming months. This resolution illustrates Mali's position as one of Africa's primary Gold producers, as the nation seeks to enhance its share of earnings from foreign mining entities.
Details surrounding the release of the detained Resolute employees remain unclear; reports indicate that their freedom is contingent upon signing a memorandum of understanding and fulfilling part of the financial settlement. The military regime has levied charges against the executives, alleging forgery and property damage, actions perceived as coercive towards the Australian firm amid increasing tensions with foreign, predominantly Western, mining companies.
Since taking control through a coup in 2021, Mali's ruling junta has aimed to recalibrate its relationships with international entities. As part of this ongoing effort, President Col Assimi Goïta introduced a new mining code last year, raising the allowed stake for state and local investors from 20% to 35%. This move highlights Mali's ambition to take a firmer grip on its lucrative natural resources.
Reporting contributed by Natasha Booty.
Effective immediately, Resolute will part with $80 million from its existing cash reserves, committing to the remaining amount within the upcoming months. This resolution illustrates Mali's position as one of Africa's primary Gold producers, as the nation seeks to enhance its share of earnings from foreign mining entities.
Details surrounding the release of the detained Resolute employees remain unclear; reports indicate that their freedom is contingent upon signing a memorandum of understanding and fulfilling part of the financial settlement. The military regime has levied charges against the executives, alleging forgery and property damage, actions perceived as coercive towards the Australian firm amid increasing tensions with foreign, predominantly Western, mining companies.
Since taking control through a coup in 2021, Mali's ruling junta has aimed to recalibrate its relationships with international entities. As part of this ongoing effort, President Col Assimi Goïta introduced a new mining code last year, raising the allowed stake for state and local investors from 20% to 35%. This move highlights Mali's ambition to take a firmer grip on its lucrative natural resources.
Reporting contributed by Natasha Booty.
