Australian mining company Resolute Mining has reached an agreement to pay $160 million to the government of Mali in a bid to resolve a tax dispute. The payment follows the recent detention of the company’s CEO, Terence Holohan, and two employees during a visit to the West African country.
In a statement released Monday, Resolute confirmed an initial payment of $80 million from its existing cash reserves, with plans to pay the remaining amount in the coming months using its available liquidity. The company’s stock price dropped by as much as 14.3% in early trading on Monday, reaching a low of A$0.345, its lowest since March.
The detained employees were in Bamako, the capital of Mali, to engage with local mining and tax officials over routine business discussions. Despite the detentions, Resolute emphasized that operations at its Syama gold mine, which accounts for a significant portion of its annual production, have continued without disruption.
Mali, a key gold producer in Africa, has witnessed a rise in the detention of mining personnel as the government seeks to extract higher revenues from the industry. The Syama mine, one of Resolute’s two operational sites, is critical to the company’s revenue, producing nearly two-thirds of its total gold sales.
Resolute, which holds an 80% stake in the mine, has assured investors that the ongoing operations have not been affected. The company is working closely with Mali’s authorities to facilitate the release of its employees, who remain in good health.
