Australia’s Resolute Mining Resolves Tax Dispute with Mali’s Junta
Australia’s Resolute Mining has agreed to pay $US160 million ($AU246 million) to Mali’s ruling junta to settle a tax dispute, following the detention of the company’s CEO and two employees in the West African country. The CEO, Terence Holohan, and the two others were detained in Mali’s capital, Bamako, on November 8th while visiting the country for talks over an unspecified dispute.
The government did not provide a reason for their detention, which raised concerns about the business environment in Mali. However, Andrew Wray, the company’s non-executive chairman, announced in a statement on Resolute Mining’s website that all claims made by Malian authorities against the company, including those related to tax, customs levies, maintenance, and management of offshore accounts, have been resolved.
Key Points:
– Resolute Mining will pay Mali $US80 million from its existing cash reserves, with an additional $US80 million to be paid in the coming months.
– The company assured that its CEO and employees are safe and well, and efforts are underway to secure their release.
– Resolute Mining has been operating at Mali’s Syama gold mine for years, holding an 80% stake in the large-scale operation, with the Malian government owning the remaining 20%.
The detention of Resolute Mining’s personnel is just the latest incident in Mali’s mining sector, which has come under increased scrutiny by the military authorities. In September, four employees of Canadian company Barrick Gold were also detained for several days, highlighting the challenges faced by foreign mining companies operating in Mali.
Mali is a significant gold producer in Africa, but the country has been grappling with issues such as jihadi violence, poverty, and hunger for many years. Since the military seized power in 2020, the junta has been exerting pressure on foreign mining companies to enhance government revenues.
With the resolution of the tax dispute, Resolute Mining aims to continue its operations in Mali and contribute to the country’s mining sector. The company remains committed to upholding its obligations and fostering a positive working relationship with Malian authorities.
In conclusion, the agreement between Resolute Mining and Mali’s ruling junta marks a significant milestone in resolving the tax dispute and ensuring the continued presence of foreign mining companies in the country. By adhering to legal and financial obligations, both parties can work towards a mutually beneficial partnership that supports economic development and stability in Mali’s mining industry.
FAQs:
1. Why were Resolute Mining’s CEO and employees detained in Mali?
– The reason for their detention has not been disclosed by the Malian government.
2. How much will Resolute Mining pay to resolve the tax dispute with Mali?
– The company has agreed to pay $US160 million ($AU246 million) to settle the dispute.
3. What is the significance of Mali’s mining sector in Africa?
– Mali is a key gold producer in Africa, but the sector faces challenges such as jihadi violence, poverty, and hunger.