The chief executive of Resolute Mining, a gold mining company based in both Australia and the UK, has stepped down from his position. Terry Holohan’s resignation comes shortly after he faced a difficult period in Mali last year, where he and his team were briefly detained during discussions with the military government regarding their business operations in the country.
Their detention occurred in Bamako, the capital of Mali, and followed disputes about payment and terms of production. To resolve these issues, Resolute agreed to pay around $160 million. Following this incident, Holohan took a leave of absence from the company in December.
On Monday, Resolute announced Holohan’s resignation as both CEO and managing director, effective immediately. Chris Eger, who was previously the chief financial officer, has stepped in as the interim chief executive.
The company’s shares saw a significant drop in November when news of the detentions broke, and they have not fully recovered since. The Malian government has been taking a tougher stance on mining operations, particularly concerning its major asset, the Syama gold mine, where they are demanding higher local participation and a bigger share of revenues from mining companies.
This shift in policy is not unique to Resolute. Other companies, such as Barrick Gold from Canada, are also facing challenges in Mali. Barrick had to halt its operations in the country after gold was seized from one of its mining complexes.
Eger remarked that the situation in Mali has been one of the toughest periods the company has ever encountered. Despite the settlement made with the Malian government, Resolute has struggled to maintain a consistent dialogue with authorities, as their focus has shifted towards negotiations with other mining companies.
Resolute’s non-executive chair, Andrew Wray, praised Holohan for his contributions to improving the company’s operational performance, especially at the Syama mine, which has potential for growth. The company is currently in discussions regarding settlement terms with Holohan.
As of now, Resolute’s shares have fallen by 5% in early trading in London.