Mali is pressing Resolute Mining Ltd. for a $160 million settlement in a tax dispute, following the detention of the Australian gold company’s CEO, sources say.
CEO Terry Holohan and two other company officials have been held in Bamako since late last week after Holohan visited for discussions with Mali’s tax and mining authorities, Bloomberg reported.
The move reflects increased pressure from the military-led government in Africa’s third-largest gold producer, as they seek to push mining companies to revise economic agreements.
The government insists that Resolute, which runs the Syama gold mine, pay 100 billion CFA francs ($162 million) to resolve a dispute largely involving alleged back taxes identified in a sector-wide audit, according to sources who requested anonymity due to the sensitive nature of the issue.
According to one source, discussions are ongoing about a possible agreement where Resolute would pay half of the $162 million now and the remainder later. Resolute declined to comment on Wednesday but labelled the claims “unsubstantiated” in a Nov. 11 statement, adding that it continues to work with the government toward a resolution.
Mali’s junta has been pressing mining companies to renegotiate their contracts after enacting laws that increase the state’s share of mining profits. The government has even warned Barrick Gold Corp. that it may reclaim the Loulo mine permit when it expires in 2026. Barrick’s CEO, Mark Bristow, stated last week that discussions with Malian leaders are ongoing to reach a “mutually acceptable outcome.”
Recently, Allied Gold Corp. and B2Gold Corp. reached agreements with Mali’s government for their Sadiola and Fekola projects, agreeing to payments of around $116 million and $204 million, respectively, under the new terms.
