Australian mining company to pay Mali $160 million in tax dispute

Resolute has made an initial payment of $80 million as part of the settlement from existing cash reserves and will make future payments of about $80 million in the coming months from existing liquidity sources, it said in a statement.

Resolute shares were down as much as 14.3% in early trading on Monday to A$0.345, the lowest since March 1.

The detained employees were in Mali's capital Bamako to hold discussions with mining and tax authorities regarding general activities related to the company's business practices, the company said last week.

Operations continue

Resolute is currently working with the Mali government to release the detained employees, who remain "safe and well", the miner said on Monday.

Mali is one of Africa's top gold producers and the detention of mining company employees, which have also included some senior local staff at Canada's Barrick Gold, is becoming part of a pattern as the government seeks to extract more income from the sector.

Resolute's gold mine in Syama, Mali - one of its two operational mines - contributed nearly two-thirds of its annual sales of 329,061 ounces in 2023. Resolute owns an 80% stake in the project, while Mali's government holds the rest.

"The Company notes that operations on site continue as normal and have not been impacted," Resolute said in its statement.

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