The mining firm Resolute has agreed to pay $160m (£126m) to Maliʼs military-run government after its executives got detained in the nations capital; The dispute involves the companyʼs Syama gold mine operations
Terence Holohan and two other British staff members were held by authorities about a week ago during tax-related discussions (which included talks about offshore accounts and custom fees). The company says theyʼre safe but still working on their release
Maliʼs government – which took control after a coup four years ago – demanded back-taxes and new terms for the mining operations: This follows their decision to change mining rules last year to get more money from foreign companies by:
- Taking bigger stakes in mining projects
- Getting higher tax payments
- Re-negotiating existing agreements
The company has already paid half the settlement amount from its cash reserves; and will pay the rest in coming months. Its saying that daily work at the mine hasnʼt stopped – but its stock value has dropped more than 40% since the detention news came out
The firms shares in both London and Sydney markets took big hits after trading resumed; with London prices going down 4.33%. The UK government says its helping the detained Brits and talking with local officials about the situation