Mali releases three executives from the Australian company Resolute Mining

The general manager and two employees of the Australian company Resolute Mining were released on Wednesday November 20 in Mali, according to a judicial source and a local manager of the gold mine, after an agreement worth 160 million dollars (around 151 million euros) with the government. The three men were arrested in November after traveling to Bamako for what they believed to be routine negotiations with the ruling junta. Instead, the British chief executive, Terence Holohan, and two of his colleagues had been “detained unexpectedly” to be questioned.

“The three officials of the Australian company who were arrested were released after the signing of a memorandum of understanding between the two parties”declared a judicial source. “The CEO and the two other managers of the company were actually released”specified a Malian manager of the Syama mine (North-West). Resolute owns 80% of a subsidiary that owns this gold mine, with the Malian state controlling the remaining 20%, according to the company’s website.

The $160 million payment poses a significant hurdle for Resolute, which according to its financial statements holds $157 million in cash. Resolute said it would pay the Malian government $80 million from “existing cash reserves” and that it would make another payment of $80 million within “months to come”.

Since taking power, Mali’s military leaders have promised to recover gold mining revenues from foreign companies operating in the country. This is the second time in recent months that employees of a foreign mining company have been detained. Despite being one of Africa’s leading gold producers, Mali is one of the poorest countries in the world. This West African state is plunged into a political, security and economic crisis and has been fighting since 2012 against the armed groups of Al-Qaeda and the Islamic State (IS), as well as against a separatist insurgency in the north of the country.