Resolute Mining chief executive Terry Holohan and two colleagues have been released from detention by the Mali government, according to reports from French news agency AFP.
Resolute Mining chief executive Terry Holohan and two colleagues have been released from detention by the Mali government, according to reports from French news agency AFP.
The reported release of the Resolute staff comes days after the company agreed to pay the Mali government $US160 million ($242 million) across two tranches.
The payments related to a dispute between Resolute management and Mali’s junta government, which followed a meeting between Mr Holohan and Resolute staff in Bamoko around tax and the company’s business practices.
Resolute operates the Syama goldmine in Mali in an 80-20 joint venture with the government.
The government recently passed a new mining code allowing it to secure up to a 30 per cent stake of in-country projects and a larger slice of revenue.
Resolute told the market its staff had been detained following meetings on November 11 and had maintained regular contact over the period.
It announced an initial settlement payment to Mali of $US80 million earlier this week.
A second tranche of around $US80 million will also be made.
The cash will come from the company’s financial reserves, which stood at $US157 million as of October 31.
Resolute also had more than $40 million worth of gold bullion on hand at the end of the September quarter.
The Africa-focused gold producer runs mines at Syama and the Mako project in Senegal.
It is not the only gold producer to have faced challenges with the Mali government in recent months.
In October, the government threatened to take back Barrick Gold’s Loulo mine concession at the end of its current permit in 2026. Barrick is currently renegotiating its arrangements there.
B2Gold finalised a new agreement with over its Fekola gold project in September, and Allied Gold reached similar agreement the same month.
Both those agreements were struck in response to the nation’s new mining code.
The challenges facing the gold sector in Mali have led some with an eye on the country to proceed with additional caution.
ASX-listed Marvel Gold revealed yesterday that a deal to sell its gold projects in Mali to Precious Metal Consulting and Engineering had fallen through as a result of recent developments.
The two parties have agreed to continue non-exclusive negotiations to see if a revised deal can be struck.
Resolute shares were trading 2.3 per cent lower at 42 cents this morning.
