Australian mining company Resolute Mining has agreed to pay Mali's military government $160 million to settle a tax dispute after the company's British CEO and two other staff were detained. The payment will be made in installments, with $80 million paid immediately. The detentions are part of Mali's broader efforts to increase its share of income from foreign mining operations, following a coup in 2021 and a new mining code that allows greater state and local investment.
Resolute Mining's shares plummeted by 33% after its CEO was detained in Mali amid the military government's push for a larger share of resource revenues. The detention occurred during discussions about the Syama gold mine, as Mali seeks to renegotiate mining contracts following a 2020 coup. This move is part of a broader trend in West Africa, where countries are asserting more control over mineral production. Resolute is working towards a settlement to ensure the safety of its employees and the future of its operations.
Shares of Resolute Mining fell over 30% after its CEO and two employees were detained in Mali amid disputes over tax claims exceeding $100 million. The Malian government is pressuring mining companies to renegotiate contracts, following a 2022 audit and new mining code aimed at increasing state revenue. This incident highlights the growing tensions between mining firms and the military-led government in Mali, which has been taking a tougher stance on foreign mining operations.
