Gold miner Resolute Mining will make a third and final payment of $30m to the government of Mali at the end of this month, using existing cash resources, and migrate its Syama mine in 2025 to the country’s new mining code, it said on Friday.
In early November, the Malian government detained Resolute Mining CEO Terry Holohan and two other employees for ten days, claiming various unpaid taxes. At the time, the company said the tax claims were unsubstantiated.
The Malian government introduced a new mining code in 2023, which some companies agreed to quite quickly. However, Resolute and Barrick Gold, which also had employees detained, had been slower to respond.
On November 18, when Holohan and the two other employees were released, Resolute signed a “protocol” with the government, under which it agreed to pay a total of $160m to settle all taxes, customs levies, maintenance and management of offshore accounts and comply with the 2023 mining code.
Resolute said on Friday that as a result of the agreement, it would pay a 30% corporate tax rate, up from 25% previously, and no longer be exempt from the fuel levy. It will pay royalties to the government on a sliding scale (which it said it had been doing since July 2024). At a gold price of above $2,500/oz, the royalty rate is 10.5%.
In addition, the government of Mali would hold a 20% preference share interest in Syama, while Resolute’s subsidiary would hold the other 80% as ordinary equity. The new mining code provides for VAT refunds.
Resolute said Holohan had taken leave of absence until 31 January and CFO Chris Eger would act as CEO in his absence. Group Financial Controller Dave Jackson would be acting CFO.
