By Simon Johanson and Jesinta Burton
Resolute Mining has had close to $500 million wiped off its books after the gold miner confirmed its chief executive, Terry Holohan, and two other employees were being held by Mali’s military junta in the landlocked African country.
The gold miner’s stock slid 32.8 per cent, from 64 cents to 45 cents, as investors digested news of the miner’s executives being held in the country’s economic and financial centre, Bamako. Resolute shares were as high as 88 cents on the ASX three weeks ago.
Resolute, valued at more than $1 billion, confirmed in an ASX announcement on Monday that its boss and two other executives were being held by authorities, but the Western Australia-focused firm said they were being treated well and were safe.
Resolute Mining chief executive Terry Holohan is detained in a hotel in Bamako.Credit: Resolute website
The company said it was in regular communication with the three executives. “Resolute’s priority remains the safety and wellbeing of its employees,” it said.
“The employees are being treated well … [and] the company is continuing to work with the government on a resolution and will provide further updates on the situation as appropriate.”
The Australian gold miner owns 80 per cent of the Syama gold mine, a large-scale underground operation that it controls through a Malian subsidiary, Societe des Mines de Syama. The rest is held by the government of Mali.
The company also mines in neighbouring eastern Senegal, where it majority-owns the open-pit Mako gold mine.
An Agence France-Press report, citing a judiciary source, had earlier said the Resolute executives had been arrested on Friday in Bamako and had been subsequently detained by a specialised anti-corruption and financial crime unit.
AFP also reported, citing a Resolute executive speaking on the condition of anonymity, that the executives were being questioned over suspicions of providing false evidence and misappropriation of public goods. Efforts to convince the Malian authorities that the claims against it are unsubstantiated have failed so far.
On Monday, Resolute said its executives had been in Bamako holding discussions with mining and tax authorities about its Mali business and claims made against the company.
After the meetings finished, the three employees were unexpectedly detained.
“Resolute has followed all official processes with respect to its affairs and has provided the authorities with detailed responses to all the claims made,” it said.
WA Premier Roger Cook said Holohan had not come to harm and that he was being looked after.
“Obviously, this is a very concerning issue for both the company and his family, and we hope he’s okay and will be able to come home soon,” Cook said.
“It does underscore just how risky some of these jurisdictions are when it comes to undertaking these activities.”
Mali’s constitutional democracy was overthrown in 2012 after a military coup. Another coup d’etat in 2021 installed vice president Assimi Goita, who is the country’s current ruler.
Leader of Mali’s ruling junta, Lieutenant Colonel Assimi Goita (centre), attends a military parade in Bamako, Mali in 2022.Credit: AP
The executives were receiving support on the ground from Britain and international embassies and consulates, the company said.
Holohan, who joined Resolute in 2021 as chief operating officer, was promoted to chief executive and managing director in 2022.
The detention of Resolute’s executives follows a number of recent arrests targeting employees of fellow gold miner Barrick Gold, by the military government, which staged a coup in 2020.
Four Barrick employees were arrested in September for alleged financial crimes. They were released in October as the Canadian miner agreed to resolve existing claims and disputes between it and the Malian government.
Gold is Mali’s major export, contributing to a quarter of the national budget and three-quarters of the country’s export earnings. The mining sector is dominated by foreign groups, including Barrick and B2Gold and Britain’s Hummingbird Resources.
Last year, Mali’s military-led government signed into law a new mining code designed to increase local ownership of gold mining facilities and to raise the revenue it derives from them.
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correction
An earlier version of this article incorrectly stated that Resolute Mining owns the Ravenswood gold mine in Queensland. The mine was acquired by EMR Capital & GEAR in 2020 and is not owned by Resolute.