By Enyichukwu Enemanna
An Australian gold mining company, Resolute Mining has agreed to pay the sum of $160m (£126m) to authorities in Mali as part of resolution for a tax dispute, following the detention of its British boss and two other staff.
Terry Holohan and his colleagues were reportedly arrested while travelling to the capital city, Bamako, for what they were expecting to be routine negotiations.
They remain in detention as the firm seeks to secure their release, including payment of outstanding tax.
On Sunday, the firm which owns a large stake in the West African nation’s gold mine said it is ready to pay $80m, representing 50% of the total sum immediately from existing cash reserves while the outstanding balance will be paid in coming months.
Mali which is one of the Africa’s top gold producers is increasing efforts to collect more revenue from foreign investors in the solid mineral sector.
It is not yet clear when the three Resolute employees will be released.
Part of the conditions for the release of the detained Resolute Mining CEO and others include signing of a memorandum of understanding and complete the initial payment, French broadcaster RFI said in a report.
The military junta in Mali had detained the three Resolute executives on alleged forgery and damaging public property.
Mali had launched a crackdown on foreign companies especially Western mining firms.
Since taking power in a coup in 2021, Mali’s junta has sought to reconfigure its political and trade relationships with international partners.
Last year, President Col Assimi Goïta signed into law a new mining code increasing the maximum stake for state and local investors from 20% to 35%.
A fellow junta-led country, Burkina Faso had earlier announced a plan to withdraw mining permits issued to some foreign companies, opting to produce more of its own gold.
Key firms operating in the country’s mining sector include, London-listed Endeavour Mining, Australia-based West African Resources, Russia’s Nordgold, and Canada’s Orezone Gold Corporation.
