The Government of Mali will partially lift the suspension on mining permits by 15 March, enabling the progress of license applications while keeping new permit approvals on hold. This move is expected to revitalize the industry, notably benefiting projects like Toubani Resources’ Kobada Gold Project, which could generate significant economic returns and job opportunities for Mali.
The Government of Mali plans to partially lift the suspension of mining permits by 15 March, significantly benefiting the mining industry. Toubani Resources (ASX:TRE), a West Africa-focused explorer, has welcomed this decision, anticipating a positive effect on project approvals. Permits for renewing and transferring existing exploitation licenses will now be processed, while the issuance of new mining permits remains suspended.
The suspension, initiated in November 2022, aimed to audit mining operations and review the Mining Code established in 2019. Phil Russo, Managing Director of Toubani Resources, described the decision as a move toward normal operations in the industry, emphasizing the need for timely approbation of licenses.
Russo remarked on the necessity for the mining sector to progress, stating, “Integral to any mining industry is the normal course of business.” He indicated that resuming permit approvals would facilitate advancement from exploration to mining for existing projects, which is essential for industry health.
Mali’s updated mining code is designed to increase government revenue from mining, aligning with global trends seen in nations like Indonesia and Queensland. Russo noted, “You have to have a long-term view of Africa,” addressing the larger context of emerging countries seeking a greater share of mining wealth.
Various mining companies, including Allied Gold and B2Gold, have already engaged with the Malian government, with Toubani Resources finalizing its investment framework for the Kobada Gold Project. This project represents a significant contributor to Mali’s economy, projected to generate over US$1.2 billion in benefits and create substantial employment opportunities across its construction and operational phases.
Once operational, the Kobada Gold Project is expected to become Mali’s fifth-largest gold mine, with a capital investment of US$216 million. An updated feasibility study indicates a strong financial outlook, including a post-tax net present value (NPV) of US$635 million at a gold price of US$2,200 per ounce, further enhancing the project’s attractiveness to investors.
Mali stands as Africa’s third-largest gold producer, contributing nearly 8% of its GDP from mining activities. As the gold market continues to thrive, with a valuation exceeding US$13 trillion in 2023, the anticipated lifting of the permit suspension is projected to foster increased investor confidence and stimulate new developments in the sector.
In conclusion, the Government of Mali’s decision to partially lift the mining permit suspension marks a significant step towards revitalizing the mining industry. Toubani Resources and other companies are likely to benefit from this change as they advance projects such as the Kobada Gold Project, which promises substantial economic contributions and job creation. Furthermore, this lifting aligns Mali’s mining policies with global trends, potentially attracting more investments and enhancing the country’s position in the gold market.
Original Source: colitco.com
