Resolute Mining (ASX:RSG) today announced the completion of a second settlement payment of approximately US$50m to the Government of Mali, marking significant progress in resolving outstanding disputes with the West African nation. This payment, part of a broader settlement totalling US$160m, was made from existing cash reserves, with a final instalment of approximately US$30m expected by the end of 2024.
These payments follow a memorandum of understanding (Protocol) signed on 18 November 2024, at which time an initial payment of about US$80 million was made.
The agreement seeks to resolve longstanding claims by Mali’s government, including taxes, customs levies, and offshore account management, while providing a framework for future collaboration. The Protocol also facilitates Resolute’s migration to Mali’s 2023 Mining Code and ensures the safety of its employees during the process.
Executive detentions
The announcement comes just days after the safe release of Resolute’s CEO, Terence Holohan, and two other executives, who were detained by Malian authorities on 8 November 2024. The executives were held at the Economic and Financial Centre in Bamako. On 21 November, the detainees were confirmed to have been released, and have since left Mali.
The government, under its 2023 Mining Code, has sought to renegotiate contracts to increase state revenues, raising its stake in mining projects from 20% to 35%. Resolute’s Syama Gold Mine, a cornerstone of the company’s operations, has been operating under agreements valid until 2029.
The detentions followed a similar incident involving Barrick Gold Corp, a Canadian mining company, whose four senior Malian employees were detained in September 2024 on allegations of financial crimes. This occurred amid protracted negotiations concerning Barrick’s Loulo and Gounkoto mines. Malian authorities accused Barrick of failing to meet commitments related to environmental standards, corporate social responsibility and foreign exchange regulations.
Resolute’s share price dropped sharply by 32.84% on 11 November, following news of the detentions, closing at 45 cents — its steepest one-day drop since 2008.
Operations at Syama remain steady
Despite these challenges, Resolute has reported that operations at its Syama Gold Mine remain unaffected.
Andrew Wray, Resolute’s Non-Executive Chairman, stated: “Resolute remains focused on securing the long-term future of, and creating certainty for, the Syama Gold Mine and its expansion plans.”
Resolute’s next steps include finalising the US$30m settlement payment and continuing discussions to clarify elements of the Protocol. The company remains committed to its employees’ safety and maintaining collaborative relationships with stakeholders.