Australian gold miner Resolute Mining saw its shares plummet more than 30 per cent on Monday following the detention of its chief executive Terence Holohan and two other employees in Mali. The executives were visiting Bamako, the nation’s capital, to address what the company describes as “unsubstantiated” claims against the organisation.
The detentions occur amid mounting scrutiny of mining operations in Mali, where the company’s 2022 financial report revealed ongoing disputes with local tax authorities over additional payments exceeding £100 million for the 2015-2021 period. Resolute Mining operates the Syama mine through a subsidiary, maintaining an 80 per cent ownership stake, whilst the Malian government holds the remaining 20 per cent.
This development reflects a broader pattern of increasing pressure from the Malian government on mining companies to renegotiate their contracts. Major industry players including Barrick Gold, AngloGold Ashanti, and Endeavour Mining maintain significant operations in the region. A recent precedent was set when Barrick Gold resolved a similar dispute in September by paying £85 million to the government after four of its employees were detained over claims of unpaid taxes and royalties totalling £500 million.
Berenberg mining analyst Richard Hatch suggests these events will likely “add to more cautious investor sentiment about Mali.” Despite gold miners experiencing substantial gains this year amid record-high precious metal valuations, Resolute Mining’s shares, which had previously surged over 90 per cent in 2023, faced a dramatic reversal following Monday’s news.
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