Resolute Mining CEO, Terence Holohan and two other employees remain in detention in Mali, diplomatic sources confirmed on Thursday. The Australian company had announced their temporary detention by Malian government officials on Sunday but has since provided no further updates.
The executives were in Bamako, Mali’s capital, for discussions with mining and tax authorities regarding the company’s business practices. However, reports indicate the military-led government is demanding at least $161 million from Resolute to settle alleged back taxes, a claim the company has called “unsubstantiated.”
Shares of Resolute Mining (RSG.AX) fell as much as 8.1% on Thursday to A$0.395, their lowest since March. Following the drop, trading in Resolute shares was halted on the Australian Stock Exchange, with the company promising updates “as and when appropriate.”
Mali’s junta, which adopted a new mining code in August 2023, is seeking to increase state ownership of gold concessions and recover lost production revenues. This shift has caused friction with major gold mining firms in the region, including Barrick Gold and B2Gold.
In September, Malian authorities briefly detained four employees of Barrick Gold and demanded $500 million in unpaid taxes and dividends. Discussions between the parties are ongoing. Resolute Mining now finds itself in similar negotiations as tensions escalate between the junta and international mining companies.
