11th Nov 2024 05:59
(Alliance News) - The chief executive and two employees of Australian company Resolute Mining Ltd, which owns a gold mine in Mali, were detained while in Bamako to discuss disputes with the authorities, the firm said on Sunday.
Shares traded down 33% at AUD0.45 each in Sydney on Monday.
It is the second time in just over a month that employees of a foreign mining firm have been detained in Mali, as the ruling military junta seeks greater control over the lucrative sector.
CEO Terence Holohan and two of his colleagues "were in Bamako to hold discussions with the mining and tax authorities regarding general activities related to the company's business practices in Mali", the firm said in a statement on Sunday.
The talks also involved "progressing open claims which have been made against Resolute and which the company maintains are unsubstantiated," the statement added.
"Following the conclusion of these meetings on Friday, the three employees were unexpectedly detained."
The Resolute executives were arrested at a hotel in the Malian capital and taken to a specialised unit set up by the junta to tackle corruption, and economic or financial crimes, a judiciary source told AFP on Saturday.
They are being questioned over suspicions of false evidence and misappropriation of public goods, said a Resolute executive on condition of anonymity.
The company has provided the authorities with "detailed responses" to the accusations, according to the statement.
"While Resolute is working toward a settlement with the government of Mali to help secure the long-term future of the Syama Gold Mine, the upmost priority remains the safety and wellbeing of its employees," it added.
The staff members are receiving support from the embassies and consulates of Britain and other countries operating in Mali, the firm said.
Resolute holds 80% of a subsidiary that owns the northwestern mine of Syama, with the Malian state controlling the remaining 20%, according to the firm's website.
The Australian company also owns a gold production site in Mako in neighbouring Senegal, and has other exploration operations in Mali, Senegal and Guinea.
Since seizing power, Mali's leaders have vowed to ensure a more equitable distribution of mining revenues.
Despite being one of the leading gold producers in Africa, the Sahel nation is also one of the poorest countries in the world.
Mali is embroiled in a political, security and economic crisis, and since 2012 has been battling Al-Qaeda and Islamic State armed groups, as well as a separatist insurgency in the north.
Gold contributes a quarter of the national budget and three-quarters of export earnings.
Foreign companies, which dominate the mining sector, have recently faced tighter control by the junta.
Four employees of Canadian mining company Barrick Gold Corp in Mali were detained for several days in September before being released.
Barrick Gold said it has reached an agreement with the state and paid XOF50 billion, around USD81 million, in October.
But the government in late October said Barrick Gold had not honoured its commitments and threatened to pursue the firm.
After the 2021 coup, Bamako broke off relations with former colonial ruler France, which had been helping to fight jihadist insurgents in the north, and turned to Russia for political and military assistance.
source: AFP
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