(Ecofin Agency) - On November 8, 2024, the Malian government detained three executives from Resolute Mining, including CEO Terence Holohan, amid allegations of tax irregularities. The owner of the Syama gold mine has since agreed on a $160 million settlement to resolve the matter and secure their release.

On November 21, Resolute Mining confirmed that Holohan and his colleagues had been released and were safe. “The three employees are safe and well and have departed the country,” the company stated.

This ends a tense standoff between Resolute and the Malian authorities. Initially, the company denied the accusations regarding tax payments but later consented to pay $160 million to resolve the dispute. On November 18, Resolute announced an initial payment of $80 million, with plans to pay the remaining amount in the coming months.

Resolute is not alone in facing scrutiny from the Malian government; other gold producers have also been impacted by recent tax adjustments following an audit that revealed a revenue shortfall of between CFA300 billion ($484.3 million) and CFA600 billion ($968.5 million) for 2023. 

Companies such as Canada’s Allied Gold, B2Gold, and Robex Resources have agreed to pay substantial sums to settle their disputes with the government, while Barrick Gold is still in negotiations, reportedly facing demands of up to $500 million from Mali.

Mali wants to apply its new mining code across all mines in the country, seeking to generate an additional CFA500 billion ($800 million) in public revenues. Adopted in 2023, the new code raises State shareholding in mines from 20% to 30% and introduces a 5% shareholding for local investors.

Resolute’s Syama mine is expected to produce between 205,000 and 215,000 ounces of gold in 2024.

Emiliano Tossou

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