Mali Partially Lifts Mining Permit Suspension, Boosting Industry Confidence
Mali will lift the suspension on mining permits by March 15, allowing renewals and transitions while keeping new permits on hold. This move is welcomed by Toubani Resources, which emphasizes its importance for operational normalization and future projects like the Kobada Gold Project, anticipated to generate over $1.2 billion in economic benefits. The updated mining code aims to increase government revenue shares in mining, signaling alignment with global trends.
The Government of Mali has announced a partial lifting of the suspension on mining permits, effective from March 15. This decision aims to provide clarity for the industry and facilitate project approvals, which Toubani Resources (ASX:TRE) has welcomed due to its positive implications for their work. Although the suspension for new mining permits and search permit transfers persists, the renewal of search and exploitation permits will be permitted.
In November 2022, the Ministry of Mines enacted the suspension to conduct an audit of mining operations and assess the 2019 Mining Code. Phil Russo, Managing Director of Toubani Resources, emphasized that this rejuvenation represents a normalization of operations. “Integral to any mining industry is the normal course of business, just being able to get your licenses approved,” Russo remarked, highlighting the prolonged inactivity of Mali’s licensing body.
The updated mining code focuses on increasing Mali’s share of mining revenues and mirrors similar global trends. Russo noted, “You have to have a long-term view of Africa… all these emerging countries wanting a greater share of the pie, that’s nothing new.” Several companies have already established agreements with the Mali government, including Allied Gold, B2Gold, and Robex Resources, among others.
Toubani Resources continues to prioritize the 2.2-million-ounce Kobada Gold Project, anticipated to deliver over $1.2 billion in direct economic benefits and create up to 1,500 jobs during construction and over 1,000 jobs during its operational phase. Russo underscored the significance of local and governmental support, stating, “For us in a country, we ask ourselves two questions… does the local community support mining in the project and does the state government support the project?”
Projected to become Mali’s fifth-largest gold mine, Kobada’s financial outlook includes an estimated upfront capital cost of $216 million. The recently completed Definitive Feasibility Study estimates a post-tax net present value (NPV) of $635 million at a gold price of $2,200 per ounce. Toubani aims for the project to be shovel-ready by 2025, with Russo confidently asserting its potential benefits: “Once built, and hopefully it won’t take us too long to do that, it’s going to be spitting off benefits for them immediately.”
Mali is Africa’s third-largest gold producer, contributing approximately 8% to its GDP and nearly 75% of export revenues. The recent lifting of the permit suspension is projected to enhance investor confidence and accelerate new development initiatives within the country’s burgeoning gold sector.
In summary, the Mali government’s decision to partially lift the mining permit suspension signifies a pivotal moment for the mining industry, particularly for companies like Toubani Resources. This augurs well for project developments and aligns Mali’s mining practices with global standards. The Kobada Gold Project showcases significant potential economic benefits and job creation, reinforcing the importance of local and governmental collaboration for future mining ventures. With this development, Mali is poised for growth in its mining sector, highlighting its status as a critical player in the gold market.
Original Source: colitco.com
