Mali’s government will partially lift the suspension on mining permits by 15 March, enhancing operational certainty in the sector. Toubani Resources welcomed this decision, as it facilitates permit renewals and transitions for existing projects. While new permits remain suspended, the move aligns Mali’s updated mining code with global trends for greater government revenue share, fostering favorable conditions for significant projects like the Kobada Gold Project and attracting investment in the mining industry.
The Government of Mali has announced a partial lifting of the suspension on mining permits effective from 15 March, thereby providing enhanced stability for the mining sector. This decision has been positively received by West Africa explorer Toubani Resources, as it facilitates the renewal of various mining permits and transitions from exploration to exploitation, although new mining permits will still remain suspended.
The suspension had been put in place by the Ministry of Mines in November 2022 to audit ongoing mining operations and to review the 2019 Mining Code. Toubani Resources’ Managing Director, Phil Russo, welcomed the announcement as a significant step towards normalizing the operational status of the industry, as securing necessary licenses is paramount for progress.
Russo noted that the resumed permit approvals would enable mining projects to advance from exploration to operational phases, signifying a healthy development for the industry. This progression is vital as it enhances the stability and growth potential of existing mining operations in Mali.
Moreover, Mali’s revised mining code aims to ensure a more considerable share of mining revenues for the government, a trend that reflects a broader global shift in the mining sector. The move aligns with similar changes being implemented in countries such as Indonesia and Queensland, which are also reassessing their royalty structures.
Several mining companies, including Allied Gold, B2Gold, and Robex Resources, have already established agreements with the Mali government. Notably, Toubani Resources is in the process of solidifying its investment framework for the Kobada Gold Project, a significant venture projected to yield considerable economic benefits for Mali, including job creation.
The Kobada Gold Project, slated to become Mali’s fifth-largest gold mine, is anticipated to generate over US$1.2 billion in direct economic benefits. During its construction phase, it is expected to create up to 1,500 jobs and over 1,000 jobs during operations, underscoring the local and governmental support vital for such initiatives.
With an estimated initial capital cost of US$216 million, the Kobada Gold Project showcases compelling financial projections, including a post-tax net present value (NPV) estimated to reach US$635 million at a gold price of US$2,200 per ounce. Toubani Resources aims to have the project shovel-ready by 2025, paving the way for immediate benefits to the local economy.
Mali, as Africa’s third-largest gold producer, plays a crucial role in the continent’s economic landscape, with the mining sector contributing significantly to GDP and export revenues. The lifting of the permit suspension is expected to enhance investor confidence and expedite developments within the industry, reflecting a promising outlook for both Mali’s economy and the global gold market.
The recent partial lifting of the suspension on mining permits by the Government of Mali signifies a pivotal moment for the mining sector, enabling more secure operational conditions and facilitating the progression of various projects such as the Kobada Gold Project. Toubani Resources, among others, acknowledges the importance of this development in resuming normal business operations and advancing from exploration to mining phases. The updated mining code aligns with global trends, ensuring a substantial government share of mining revenues, which is expected to bolster investor confidence in Mali’s mining landscape.
Original Source: colitco.com
