SHARES in Resolute Mining fell nearly 32% by mid-morning on Monday after the company confirmed its CEO had been detained in Mali.
Resolute said in a statement on Sunday Terry Holohan and two other executives were taken by government officials after a meeting in Bamako, Mali’s capital, regarding “open claims” which it said were unsubstantiated.
Citing Resolute Mining’s 2022 financial report, the Financial Times said the miner was contesting demands from Mali tax authorities for additional payments worth more than $100m on taxes between 2015 and 2021.
Barrick Gold employees were detained last month by Mali’s government, a military junta following a second coup in 2021. They were released but the Toronto-listed company continues to negotiate a payment to the government amid claims as much as $500m is owed in alleged unpaid taxes.
“It looks like the junta is getting out the big stick to try and encourage the laggards to hurry up, and sign,” Peter Mallin-Jones, a mining analyst at Peel Hunt was quoted by the Financial Times as saying. “The actions are likely to raise an even larger red flag over groups with operations or projects in Mali.”
Resolute said its employees were receiving support “on the ground” from the UK and International Embassies and Consulates. “The company will provide a further update on the situation as appropriate,” it said in the statement.
“Resolute has followed all official processes with respect to its affairs and has provided the authorities with detailed responses to all the claims made,” it said.
Mali has overhauled the country’s mining sector after legislating a new mining code in 2023, and running an audit of new projects.
Another prominent gold miner in Mali, B2Gold recently announced it was pressing ahead with an expansion of its Fekola mine – which operates under an earlier version of the mining code – after agreeing to honour the conditions of the country’s 2023 mining code.
