Mali: Australian Mining Company to Pay Mali Junta $160m for Release of CEO

Australia’s Resolute Mining said Monday it has struck a deal worth $160 million (€151 million) with the military government of Mali, after the company’s CEO and two other executives were “unexpectedly detained”.

The three men were arrested earlier this month after travelling to the capital Bamako for what they thought were routine negotiations with the ruling junta.

Instead, British chief executive Terence Holohan and two of his colleagues were “unexpectedly detained” for questioning.

Resolute said it would pay the Malian government $80 million (€75 million) from “existing cash reserves”, with a further payment of $80 million in the “coming months”.

Since seizing power, Mali’s leaders have vowed to claw back gold mining revenues from foreign companies operating in the country.

It was not immediately clear when Holohan and his two unnamed colleagues might be released.

Resolute said it was now “working with the government on the remaining procedural steps for the release of the three employees”, adding that they remained “safe and well” in the meantime.

It was the second time in recent months that employees of a foreign mining firm were detained.

Major export

Gold contributes a quarter of the national budget and three-quarters of export earnings.

The $160 million (€151 million) payment is a significant hurdle for Resolute, which according to financial statements currently holds $157 million in cash.

Resolute holds 80 percent of a subsidiary that owns the northwestern mine of Syama, with the Malian state controlling the remaining 20 percent, according to the firm’s website.

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The Australian company also owns a gold production site in Mako in neighbouring Senegal, and has other exploration operations in Mali, Senegal and Guinea.

The arrest of the Resolute team came soon after four employees at another foreign mining firm, Canadian company Barrick Gold, were detained in Mali for several days in September before being released.

Barrick Gold said it had reached an agreement with the state and in October paid 50 billion CFA Francs (€76 million).

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