Resolute Mining’s CEO Terry Holohan resigned after a 10-day detention in Mali, linked to a $160 million tax dispute settlement with the military government. Chris Eger has been appointed acting CEO, focusing on resolving operational issues while navigating regulatory challenges in Mali and expanding into Guinea and the Ivory Coast. The company’s stock fell over 50% since late 2024 amid growing fiscal challenges.
Resolute Mining has reported the immediate resignation of its CEO, Terry Holohan, following his detention in Mali for 10 days last November. Holohan and two other employees faced arrest in Bamako while negotiating operational terms with Mali’s military government. Their release came after Resolute agreed to pay $160 million in installments to resolve a tax dispute, prompting Holohan to take a temporary leave of absence in December.
With Holohan’s departure, Chris Eger has been appointed as the acting CEO permanently, while Dave Jackson becomes the full-time Chief Financial Officer. Eger stated that the events in Mali represented a significant challenge for the company, yet he believes that the settlement agreement is progressing positively. Nevertheless, efforts to reconnect with the Malian government are stalled due to officials’ focus on negotiations with other mining firms.
Since a coup in 2021, Mali’s military government has heightened demands on international mining companies, including Barrick Gold and AngloGold Ashanti. The new mining code adopted in 2023 mandates preference shares in projects and annual foundation payments for community development, complicating operations for companies like Resolute Mining. Despite these adversities, Resolute is concentrating on operations at its Syama mine, planning to increase production and further developments this year.
However, they have postponed investments, including a significant $100 million project aimed at expanding the processing capacity of their operations from 2.4 million tons per annum to 4 million tons. The Malian government holds a 20% stake in this processing project, which currently handles about 2.4 million tons of ore annually.
Moreover, Resolute is exploring opportunities in neighboring Guinea and the Ivory Coast while managing the complicated political climate in West Africa. The company has identified value creation in these regions as a top priority for 2025 amidst the backdrop of evolving political conditions. On the financial front, Resolute’s shares fell by 0.7%, closing at 38 Australian cents, reflecting a drop of over 50% since October 2024 due to Mali’s deteriorating fiscal environment.
Resolute Mining operates primarily in West Africa, focusing on gold production. The company encountered significant challenges following the detention of its CEO in Mali, affecting its operations and strategic direction. Mali’s political instability, further complicated by military governance and new regulatory demands, poses additional risks for international miners. Understanding the implications of local government dealings, along with the company’s responses and operational adjustments, is key to evaluating Resolute’s future prospects.
The resignation of Terry Holohan as CEO of Resolute Mining marks a pivotal moment for the company following his detention in Mali. Chris Eger’s permanent appointment as CEO signals continued efforts to navigate the complexities of operating in Mali and other West African countries, despite challenges posed by governmental regulations and political instability. Resolute is committed to optimizing operations while seeking growth opportunities, particularly in Guinea and the Ivory Coast amidst a dynamic mining landscape.
Original Source: www.mining.com
