Mali plans to lift the suspension of mining permits by 15 March, offering stability to the industry. Toubani Resources’ Phil Russo highlights this as a step towards normalization, enhancing collaboration between the government and mining explorers. The country’s updated mining code aims to increase government and local community stakes in mining revenues, reflecting a broader global trend.
The Government of the Republic of Mali intends to partially lift the suspension of mining permits by 15 March, marking a positive development for the industry, according to Toubani Resources (ASX:TRE). This suspension, which had been in place since November 2022, restricted new applications for mining permits, but now permitees can renew search and exploitation permits.
Despite the easing of restrictions, the issuance of new mining permits and the transfer of search permits will still be on hold. The suspension was part of a broader effort to audit mining operations and revise the 2019 Mining Code, aimed at ensuring proper regulation of the industry.
Phil Russo, Managing Director of Toubani Resources, remarked that the restoration of permit processing reflects a normalization in the mining sector. He emphasized that a functional administrative body is vital for facilitating operational progress and fostering a healthier relationship between industry stakeholders and the government.
Russo further noted that the clarity in permitting processes offered by the government will enhance collaboration and provide the industry with the certainty it requires to advance its projects. Toubani’s primary focus remains on the long-term prospects of its Kobada Gold Project, a major initiative amid current fluctuations.
The revised mining code seeks to enhance the government’s and local communities’ share in mining revenues through increased ownership stakes. This trend of increasing government participation is not limited to Mali; it is observed globally, as Indonesia also reviews its royalty frameworks to increase governmental revenue from mining.
Russo explained that this phenomenon signifies a shift in emerging economies aspiring for a more substantial share from their natural resources, suggesting that similar adaptations will emerge globally. He cited Mali’s new code as not being dissimilar to practices in other mineral-rich countries, indicating a growing theme worldwide.
Recent agreements within Mali illustrate an industry effectively responding to the evolving investment climate. Companies such as Allied Gold, B2Gold, Robex Resources, and others have successfully reached agreements with the Mali government.
The Government of Mali’s decision to partially lift the mining permit suspension signifies a pivotal step towards normalizing the mining sector. With a renewed focus on collaboration between governmental bodies and industry stakeholders, companies like Toubani Resources are poised to secure their investments and advance vital projects like the Kobada Gold Project. This setup not only enhances governmental revenue potential but also offers significant economic benefits to local communities. The global trend towards greater governmental shares in mining revenues indicates a fundamentally shifting dynamic across various regions.
Original Source: mining.com.au
