Resolute Mining pays US$160m to resolve Mali tax dispute and release detained staff members

Resolute Mining (ASX: RSG) has agreed to pay US$160 million to Mali’s ruling junta to resolve a tax dispute, more than a week after the military-led government detained chief executive officer Terry Holohan and two senior staff members.

In a statement on Monday, Perth-based Resolute said it had signed a memorandum of understanding (MoU) with the Mali government focusing on maintaining the safety of the company’s employees and setting the framework for discussions regarding the long-term future of the Syama gold mining operation in the nation’s south.

It is not clear when the employees will be released, but they are reported to be safe and well.

Unexpectedly detained

The three British nationals are believed to have been unexpectedly detained in the capital city of Bamako after a meeting with Mali government officials regarding tax and other activities related to the company’s in-country business practices.

The MoU requires Resolute to settle all outstanding claims by the government against the company, including those related to tax, customs levies and the maintenance and management of offshore accounts.

Resolute has since made an initial payment of US$80m from a total US$157m in cash reserves and will pay another US$80m in the coming months.

‘Procedural steps’

“We confirm that we are working with the government on the remaining procedural steps for the release of the three employees who were recently detained in connection with these matters,” the statement said.

“They remain safe and well and continue to receive support on the ground from the UK and international embassies and consulates.”

Resolute said Syama’s operations had not been impacted by the incident and would continue as normal.

Resolute holds an 80% stake in the mine through a subsidiary, while the remainder is owned by the Mali government.

Military coup

Mali’s military junta seized power following a coup in 2021, after which incoming president Colonel Assimi Goïta promoted himself to army general.

In 2023, Mr Goïta rewrote the country’s mining code to allow the government and Mali’s private sector to acquire a combined 35% of projects (up from 20%) and renegotiate mining contracts.

Since then, the government has used ransom-style tactics to demand international mining companies pay back taxes.

Barrick allegations

Canadian miner Barrick Gold paid US$85m to the Mali government in October after it was alleged to have breached environmental, corporate social responsibility and foreign exchange rules.

Four local employees were detained over the allegations, and Barrick paid the ransom.

“We do not accept any claims of wrongdoing but have chosen to act in good faith as a long-standing partner of Mali,” the company said at the time.