RESOLUTE Mining confirmed its CEO Terence Holohan, and two company employees, were detained by government officials in Mali on Friday.
“The executives were in Bamako to hold discussions with the mining and tax authorities regarding general activities related to the company’s business practices in Mali in addition to progressing open claims which have been made against Resolute and which the company maintains are unsubstantiated,” said Resolute Mining in a statement on Sunday evening.
“Following the conclusion of these meetings on Friday, the three employees were unexpectedly detained,” it said, adding that its “upmost priority” was to secure the safety of Holohan and his colleagues.
Resolute said its employees were receiving support “on the ground” from the UK and International Embassies and Consulates. “The company will provide a further update on the situation as appropriate,” it said in the statement, authorised by Resolute non-executive chairman Andrew Wray.
“Resolute has followed all official processes with respect to its affairs and has provided the authorities with detailed responses to all the claims made,” it said.
A Mali mining ministry official declined to comment when contacted by Bloomberg News said over the weekend. The matter was earlier reported by Agence France-Presse.
According to the Daily Mail in Australia, Holohan was taken to a specialised unit set up to tackle corruption and economic or financial crimes.
The event will be another blow to Mali’s investment reputation after authorities detained employees of Barrick Gold earlier this year amid allegations of unpaid tax.
Mark Bristow, CEO of Barrick told Miningmx last week he would be prepared to pay the majority of economic benefits from mining to the Malian government but added that such an agreement would have to be done “in the proper way”.
Resolute, like other international miners operating in Mali, has been under growing pressure since the military seized power, said Bloomberg News in its report.
Mali has overhauled the country’s mining sector after legislating a new mining code in 2023, and running an audit of new projects.
At Resolute, Holohan has staged an impressive turnaround since his appointment about two years ago. Aided by a one-third improvement in the price of gold this year, he has taken the company into net cash of nearly $190m from $229m in net debt.
In addition to ramping up production at Resolute’s flagship Syama mine in Mali, Holohan has also driven a second phase expansion at the mine which is expected to be in operation in 2025. Plans are also afoot to extend the life of the Mako gold mine in Senegal.
Holohan also said recently the company was looking for additional opportunities. In September, the miner announced it had raised $60m in debt which would be used for new organic and inorganic expansion.
