A significant development has emerged in the ongoing dispute between London-listed Resolute Mining and the Malian government, with the company agreeing to pay an additional $50 million as part of a comprehensive settlement package.
The mining organisation, which operates the strategic Syama goldmine, has committed to fulfilling the complete $160 million settlement by year-end. This agreement encompasses the resolution of all outstanding claims, including tax and customs levies imposed by the Malian authorities.
The settlement follows a tense period during which Resolute’s chief executive, Terence Holohan, alongside two British colleagues, endured a fortnight-long detention in a government building in Bamako. Their release coincided with the company’s signing of a memorandum of understanding with Mali’s military junta, establishing groundwork for detailed negotiations regarding the mine’s future operations.
Share performance reflected positive market sentiment toward the resolution, with Resolute’s stock climbing 4.6 per cent to 22¾p, despite having suffered a 47 per cent decline over the previous month. The company maintains that operations at the Syama goldmine, which yielded approximately 212,000 ounces of gold last year – valued above $500 million at current market prices – remain unaffected by the dispute.
The settlement arrives amidst broader tensions between international mining companies and Mali’s government, which seeks to implement a new mining code. The proposed legislation would grant the state up to 30 per cent ownership in mining projects, with provisions for an additional 5 per cent stake potentially allocated to private Malian investors. The Mali government currently holds a 20 per cent stake in the Syama operation.
The resolution sets a precedent for other mining companies operating in the region, including Barrick Gold, which currently faces its own challenges with Malian authorities following the arrest of four employees.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.