Terry Holohan, the CEO of Anglo-Australian gold miner Resolute Mining, has resigned following his temporary detention in Mali last year. The company agreed to pay $160 million to settle a dispute with the Malian government over back taxes and the terms of its Syama gold mine operation. This incident highlights the increasingly challenging environment for international mining companies in Mali and other countries within Africa's 'coup belt'.
The chief executive of Anglo-Australian gold miner Resolute Mining , who was temporarily detained in Mali last year, has resigned, the company said on Monday. Terry Holohan and two other Resolute employees were detained in Bamako, Mali ’s capital, late last year following talks with the country’s military government about the terms of their operations there.
Resolute agreed to pay $160 million to settle the dispute, with Holohan taking a temporary leave of absence from his role at the company in December. On Monday, Resolute said Holohan had resigned as chief executive and managing director “with immediate effect”. Interim chief Chris Eger, former chief financial officer, would take on the role, the company said. Shares in Resolute plummeted in November when the detentions were announced and have yet to recover. The Malian government had demanded the payment of back taxes and the renegotiation of the terms of Resolute’s Syama gold mine operation, its biggest asset. Mali, Burkina Faso and Niger, part of Africa’s so-called “coup belt” ruled by military regimes, are taking a firmer stance against international mining companies in a campaign described as “terrifying” by industry insiders. Mali has revised its mining law to increase local participation in mining projects to 35 percent, up from 20 percent, and is demanding a greater share of revenue from mining groups. Canadian miner Barrick Gold is embroiled in a stand-off with Malian authorities and last month suspended operations in the west African country after gold was seized from its Loulo-Gounkoto mining complex. Eger said last week that the episode in Mali was “the most challenging the company has ever faced”. The settlement agreement was part of “paving a path forward”, he said. Resolute had tried “very hard” to continue to engage with the government since then but officials had been “consumed with discussions with other mining companies, so we have not really engaged with the government as would like”, he added.On Monday, Resolute’s non-executive chair Andrew Wray said Holohan had “played an important role in the team that has improved operational performance across our business, particularly at Syama, which is now positioned to deliver on its significant potential”. The company said it was discussing the terms of a settlement with Holohan. Eger, who joined Resolute in 2023, previously held roles at companies including miner Chaarat Gold, trading house Trafigura and Bank of America. Resolute’s shares were down 5 percent in early morning trading in London.
Business Mining Resolute Mining Mali Terry Holohan CEO Resignation Gold Mining Africa Coup Belt
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Resolute Mining Faces Production Decline and Rising Costs Amid Mali Fiscal ChangesResolute Mining, a leading gold producer in West Africa, is experiencing a decline in gold production and rising costs due to depleting reserves at its Mako mine in Senegal and new fiscal policies in Mali. The company's 2025 guidance forecasts production between 275,000 and 300,000 ounces at an AISC of US$1,650 to US$1,750 per ounce, a significant decrease from its 2024 output of 340,000 ounces. Resolute is actively managing these challenges by optimizing mine sequencing at its flagship Syama mine in Mali and exploring opportunities in Guinea and the Ivory Coast.
Read more »
Resolute Mining Faces Production Cuts and Rising Costs Amid Political Uncertainty in MaliResolute Mining, a West African gold producer, anticipates a decline in gold output and an increase in production costs this year due to the depletion of its Mako mine in Senegal and the implementation of new fiscal regulations in Mali. The company expects to produce between 275,000 and 300,000 ounces of gold at an all-in sustaining cost of US$1650-1750 per ounce in 2025. This is down from 340,000 ounces produced in 2024 at an AISC of $1476 per ounce. The recent changes in Mali's fiscal regime, including increased corporate tax, removal of fuel duty exemptions, and higher royalty rates, have significantly impacted the company's operations, leading to a capital expenditure dilemma and cash flow concerns.
Read more »
Barrick Gold Suspends Operations in Mali After Government Seizes GoldBarrick Gold has temporarily halted mining operations in Mali following the government's seizure of approximately US$245 million in gold reserves from the Loulo-Gounkoto complex. The Malian government moved the gold to a custodial bank, preventing Barrick from shipping and selling it. This action stems from ongoing disputes between Barrick and the junta-led government regarding Mali's new mining code. Barrick shares declined following the news, while Resolute Mining, another company facing challenges in Mali, saw its shares rise.
Read more »
Mali goes public with mining bonanzaMore woe ahead for miners?
Read more »
Zijin Mining Acquires Controlling Stake in Zangge MiningZijin Mining announced its acquisition of a controlling stake in Zangge Mining, a fellow Chinese company, for approximately US$1.9 billion. This deal will see Zijin acquire 24.82% of Zangge Mining's shares, making it the largest and controlling shareholder. Zangge is known as China's second-largest potassium producer and a significant player in lithium brine production. The acquisition is expected to bring synergies, particularly in their shared brine assets in Tibet, further strengthening Zijin's position in the lithium market. The deal, valued at RMB13.73 billion (RMB35 per share), represents an 18.6% premium to Zangge's last closing price and a 26.4% premium to the 20-day average. Zijin plans to consolidate Zangge, and the acquisition does not require shareholder approval.
Read more »
Barrick CEO Bristow: Mali Dispute Could Impact West Africa InvestmentBarrick Gold CEO Mark Bristow warns that the ongoing dispute between the company and the Malian government could deter investment in West Africa. Bristow highlights the importance of a transparent and equitable relationship between mining companies and governments for attracting investment and fostering development in emerging economies.
Read more »