Resolute Mining CEO quits following detention in Mali

West Africa-focused gold producer Resolute Mining (ASX: RSG) announced on Monday the resignation of its chief executive officer, Terry Holohan, who was detained in Mali for 10 days in November.

Holohan, along with two other Resolute employees, was held in Bamako, the country’s capital, amid negotiations with Mali’s military government over operational terms. The detentions ended after the miner agreed to pay $160 million in installments to settle a tax dispute. Holohan subsequently took a temporary leave of absence in December.

Resolute said Holohan’s resignation was effective immediately. Acting CEO Chris Eger will now assume the role on a permanent basis, while interim chief financial officer Dave Jackson has also been appointed full-time, the company said.

Eger said last week that the ordeal in Mali was “the most challenging [time] the company has ever faced”. He added that the settlement agreement was a step toward “paving a path forward” for the company. However, efforts to reengage with the Malian government have been hindered, as officials remain preoccupied with discussions involving other mining companies, Eger noted.

West Africa squeeze

Mali, under military control since a 2021 coup, has intensified demands on international miners such as Barrick Gold, B2Gold, Allied Gold, and AngloGold Ashanti. The 2023 mining code introduced by the government grants preference shares in mining projects and requires an annual “foundation payment” to support community development.

Despite these challenges, Resolute remains focused on optimizing operations. In 2024, the company ramped up production at its flagship Syama mine and initiated the second phase of the operation’s development, which is expected to come online this year. 

However, Resolute has delayed some planned investments, including a $100 million sulphide conversion project aimed at doubling processing capacity from 2.4 million tons per annum (Mtpa) to 4Mtpa.

The Malian government holds a 20% stake in the project, which processes approximately 2.4 million tons of ore annually.

Beyond Mali, Resolute is prioritizing opportunities in Guinea and the Ivory Coast, while navigating the increasingly complex political environment in West Africa. The company stated that its priorities for 2025 include “creating value in Guinea and the Ivory Coast and actively managing an increasingly complicated political landscape.”

Shares in Resolute closed 0.7% lower on Monday at 38 Australian cents, giving the company a market capitalization of A$789 million ($486 million). The stock has fallen by more than 50% since October 2024, when Mali’s fiscal and regulatory environment began to deteriorate.