Following the surprise detention of its British head and two other employees ten days ago, the Australian mining company Resolute Mining has announced that it will pay Mali's military government $160 million (£126 million) to resolve a tax issue.
Terry Holohan and his associates were reportedly detained on route to Bamako, the capital, for what they believed to be standard negotiations.
Resolute, the owner of a gold mine in Mali, announced on Sunday that it will use its current cash reserves to pay $80 million right away and the remaining amount over the course of the next few months.
It aims to take a larger cut of revenue from international businesses operating in the industry.
The release date for the three Resolute employees is yet unknown. According to a report by the French station RFI, they had to sign the memorandum of understanding and make the first payment as part of the requirements for their release.
The three Resolute executives were arrested by Mali's military rulers on charges of forgery and causing damage to public property.
This was reportedly an attempt to blackmail the Australian firm during the country's ongoing crackdown on international mining corporations, primarily from the West African nation.
The junta in Mali has worked to restructure its trade and political ties with foreign partners since seizing power in a coup in 2021.
A new mining rule was passed into law last year by President Col. Assimi Gota, raising the maximum stake for state and local investors from 20% to 35%.
Source: Adomonline