Mali is demanding approximately $160 million from Resolute Mining Ltd. to settle a tax dispute after the Australian gold producer’s CEO, Terry Holohan, was detained along with two colleagues in Bamako. Holohan had traveled to the capital last week to meet with Mali’s tax and mining authorities.
The dispute centers around allegations of back taxes following a sector-wide audit, with the government demanding 100 billion CFA francs (around $162 million) from Resolute, which operates the Syama gold mine. There have been discussions about a possible agreement where the company would pay half of the sum immediately and the rest later.
Resolute Mining has declined to comment on the issue but has stated that the claims against the company are “unsubstantiated.” The company is continuing talks with the government to resolve the matter.
Mali’s government has been increasing pressure on mining companies to renegotiate terms, following legislation passed last year that boosts the state’s share of profits from mining operations. The government has also threatened to revoke Barrick Gold’s Loulo mine permit when it expires in 2026. Other companies, such as Allied Gold Corp. and B2Gold Corp., have reached agreements with Mali, agreeing to pay significant sums to the state to continue their operations in the country.
