Mali releases Australian gold mining company's executives

The chief executive and two employees of the Australian company Resolute Mining were released from detention in Mali on Wednesday, a judicial source and a local gold mine official said, after Resolute struck a $160 million deal with the government.

The three were arrested earlier this month after travelling to the capital Bamako for what they thought were routine negotiations with the government.

Instead, British chief executive Terence Holohan and two of his colleagues were "unexpectedly detained" for questioning, the company had announced.

"The three executives of the Australian company who were arrested have been released following the signing of a memorandum of understanding between the two parties," a judicial source said.

Mining share

Since seizing power, Mali's military leaders have vowed to claw back gold mining revenues from foreign companies operating in the country.

Resolute holds 80 per cent of a subsidiary that owns the northwestern mine of Syama, with the Malian state controlling the remaining 20 per cent, according to the firm's website.

A Malian official from the Syama mine confirmed that "the CEO and the two other officials of the company have indeed been released".

Cash settlement

It was the second time in recent months that employees of a foreign mining firm were detained.

The $160 million payment is a significant hurdle for Resolute, which according to financial statements currently holds $157 million in cash.

Resolute said it would pay the Malian government $80 million from "existing cash reserves", with a further payment of $80 million in the "coming months".

Despite being one of the leading gold producers in Africa, Mali is also one of the poorest countries in the world.

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