November 19th 2024.
On Monday, Resolute Mining, an Australian company, announced that it had reached an agreement to pay $US160 million to Mali's ruling junta in order to settle a tax dispute. This comes more than a week after the company's CEO and two employees were detained while on a visit to the West African country's capital, Bamako. The reason for their detainment was not disclosed by the government.
According to Andrew Wray, the non-executive chairman of Resolute Mining, all claims made against the company by Malian authorities will be resolved through this agreement. This includes taxes, customs levies, and even the management of offshore accounts. Wray went on to explain that the company will pay $US80 million from their existing cash reserves, with an additional payment of $US80 million to follow in the coming months.
Fortunately, the company's CEO and employees have been reported as safe and in good health. Resolute Mining is currently working with the Malian authorities to secure their release. The company has been operating at the Syama gold mine in Mali for several years, with the mine being a major operation in the country's southwest. Resolute holds an 80% stake in the mine, while the remaining 20% is owned by the Malian government.
This recent incident is just the latest in a series of controversies surrounding Mali's mining sector, which is heavily dominated by foreign companies. In September, four employees of the Canadian company Barrick Gold were also detained for several days. The military junta, which seized power in 2020, has been closely monitoring the activities of these foreign companies in an effort to boost the government's revenues.
Mali is a key producer of gold in Africa, but the country has been struggling with poverty, hunger, and ongoing jihadi violence for many years. The military's takeover last year has only added to the instability in the country. It remains to be seen how this agreement between Resolute Mining and the ruling junta will affect the future of the company's operations in Mali.
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