Australian mining company Resolute Mining has agreed to pay $160 million to Mali's military government to resolve a tax dispute, following the unexpected detention of the company's British CEO, Terry Holohan, and two other employees 10 days ago.The three were reportedly arrested while en route to Bamako, expecting a routine negotiation.

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Resolute, which operates a gold mine in Mali, announced on Sunday that it would make an immediate payment of $80 million from its cash reserves, with the remaining amount to be settled in the following months.Mali, one of Africa's leading gold producers, has been pushing for a larger share of the profits from foreign mining operators.

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The terms of the agreement for the release of the three executives are still unclear, but reports indicate that they must sign a memorandum of understanding and make the initial payment before they are freed.The Mali junta, which has been in power since a 2021 coup, detained the Resolute staff on accusations of forgery and damage to public property.

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Many view this as part of a broader effort by the government to exert pressure on foreign, particularly Western, mining companies operating in the country.Since taking control, Mali’s military leaders have been reshaping the country's foreign and trade relations. In 2023, President Col Assimi Goïta introduced a revised mining code, raising the maximum stake for state and local investors in mining projects from 20% to 35%.

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