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Australian mining company Resolute Mining has agreed to pay Mali’s military government $160 million to settle a tax dispute following the unexpected detention of its British CEO, Terry Holohan, and two colleagues. The executives were arrested 10 days ago while en route to the capital, Bamako, for what they believed would be routine negotiations.
Resolute, which operates a gold mine in Mali, announced on Sunday that it would make an immediate payment of $80 million from existing cash reserves, with the remainder to be paid in the coming months. The agreement is reportedly a condition for the release of the detained executives. According to French broadcaster RFI, their release is contingent on signing a memorandum of understanding and completing the initial payment.
Mali, one of Africa’s leading gold producers, has intensified efforts to increase its share of income from foreign mining operations. The military junta, which seized power in a 2021 coup, has introduced policies to bolster state and local ownership in the mining sector. Last year, President Col Assimi Goïta signed a new mining code raising the maximum stake for local investors from 20% to 35%.
The arrests of the Resolute executives on charges of forgery and damaging public property are seen by analysts as part of a broader crackdown on foreign—mostly Western—mining companies. The move has been criticized as an attempt to pressure foreign operators amid the junta’s reconfiguration of Mali’s political and trade relationships.
It remains unclear when the detained executives will be released.
