The Mali government plans to partially lift the suspension on mining permits by March 15, signaling a stabilization in the mining industry. Toubani Resources and other companies can begin submitting applications for existing permits, while new allocations remain halted. CEO Phil Russo emphasized that this step enhances certainty and collaboration between the industry and government, benefiting the Kobada Gold Project, which is projected to generate significant economic impact.
The Government of the Republic of Mali is set to partially lift the suspension of mining permits by March 15, which has been in effect since November 2022. This decision, welcomed by West Africa-focused explorer Toubani Resources, is expected to provide greater stability and clarity within the mining sector. The Ministry of Mines will permit the submission of various applications, including those for renewing search and exploitation permits, although the allocation of new permits remains halted.
Mali’s mining landscape has faced uncertainty as a result of a moratorium on all new licenses aimed at auditing current operations and reviewing the Mining Code of 2019. This suspension was implemented to facilitate a significant overhaul of the mining register, ensuring proper management of mining activities.
Phil Russo, Managing Director of Toubani Resources, commented that this partial lifting of the ban signifies normalization within the mining industry. He stated, “Integral to any mining industry is the normal course of business, just being able to get your licences approved,” underscoring the need for consistency in the licensing process to foster development within the sector.
Russo also shared that improved government-industry collaboration is anticipated as companies like Toubani gain clarity regarding permitting processes. He emphasized the importance of having certainty in operations, which he believes will enhance engagement between the industry and the government.
Toubani’s primary focus is on the long-term aspirations of its Kobada Gold Project, which is projected to yield substantial economic benefits for Mali. The intention of Mali’s revised mining code is to enhance the government’s and local communities’ financial stakes in mining projects. This trend is reflective of a global movement, as countries such as Indonesia also consider changes to their mining royalty frameworks.
Russo remarked, “You have to have a long-term view of Africa…all these emerging countries wanting a greater share of the pie,” suggesting that this is not an isolated scenario but a wider global pattern. Consequently, he advocates for adaptability within the industry to navigate these evolving expectations.
Recent agreements with companies such as Allied Gold and Hummingbird Resources reveal that the sector is successfully adapting to Mali’s new investment landscape. Toubani is currently negotiating to finalize its framework to ensure the viability of the Kobada Project, prioritizing partnership with the local community and government.
The Kobada Gold Project is projected to generate over $1.2 billion in economic benefits for Mali, providing significant employment and additional economic activity through its operational lifecycle. Russo emphasized the project’s importance, stating that it is designed to yield substantial returns even at lower gold prices.
Upon completion, Kobada is expected to be Mali’s fifth-largest gold mine, delivering immediate benefits upon commencement of operations. An updated Definitive Feasibility Study reveals that Kobada has low initial costs, a compelling net present value, and a high internal rate of return, demonstrating its viability within the sector. Toubani is working towards making the project shovel-ready by 2025.
The Mali government’s decision to partially lift the suspension of mining permits is indicative of a positive shift towards normalcy in the mining sector. With a renewed focus on collaboration between industry and government, companies like Toubani Resources are gearing up to advance significant projects such as Kobada, which promises substantial economic contributions to Mali. This trend mirrors global movements in the mining industry, where countries strive for greater revenue shares, emphasizing the need for adaptability and long-term strategies within the sector.
Original Source: mining.com.au
