In a concerning development, Resolute Mining’s CEO, Terry Holohan, along with two other company executives, have been detained by the military-led government in Mali. The executives were in Bamako, the country’s capital, for meetings with local mining and tax authorities to address concerns regarding the company’s operations within Mali.
Resolute maintains that all official processes have been followed and that the accusations against them are unfounded. Despite this, Holohan and the other executives were unexpectedly detained on November 8th. The company has confirmed their detention and stated that they are receiving support from UK and international consulates.
This incident underscores the escalating tensions surrounding foreign mining operations in Mali. The military junta, which took power in a 2020 coup, has been steadily increasing its control over the mining sector, which is a crucial pillar of the Malian economy. The junta has been actively renegotiating existing contracts under a new mining code introduced in 2023, aiming to increase state ownership in mining projects from 20% to 35%.
This assertive approach by the government has already resulted in similar incidents, such as the detention of four Barrick Gold employees in September. The detention was linked to allegations of financial misconduct and ongoing discussions regarding environmental and regulatory commitments at Barrick’s Loulo-Gounkoto mines. The junta has even hinted at letting the Loulo mine concession expire in 2026.
Resolute’s Syama gold mine in Mali is one of its two primary assets, contributing nearly 60% of its total gold output in 2023. The mine, in which the government holds a 20% stake, is a long-term project crucial to Resolute’s operations. A second phase of the project is scheduled for 2025. However, despite adhering to all regulatory procedures, Resolute’s efforts to maintain favorable contract terms for Syama appear to have clashed with Mali’s new policies.
Resolute has stated that its top priority remains the safety and well-being of its employees and that they intend to continue discussions with the authorities. The company’s situation highlights the growing risks associated with operating in Mali, putting other companies like B2Gold, Allied Gold, and AngloGold Ashanti on high alert.
The news of the detention has sent shockwaves through the market, with Resolute’s shares plummeting 32.84% following the announcement, closing the day on the Australian Securities Exchange at A$0.45.
This incident serves as a stark reminder of the evolving political and regulatory landscape in Mali and the potential risks facing foreign mining companies operating in the country. It remains to be seen how the situation will unfold and what impact it will have on the future of mining in Mali.
