British mining boss detained in Mali as company agrees to huge payment deal
A London-listed mining firm must pay $160m to Maliʼs government after its British executives were held in the capital. The companyʼs stock dropped while negotiations about their release continue
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
