Mali Government to Partially Lift Mining Permit Suspension Amid Global Trends

The Mali government plans to partially lift a mining permit suspension by March 15, allowing for the renewal and transition of permits, reflecting a normalization of the industry. Toubani Resources anticipates improved collaboration with the government for its Kobada Gold Project, expected to offer significant economic benefits and job creation. This trend mirrors global shifts towards increased governmental shares in mining revenues.

The Mali government is set to partially lift its suspension on mining permits by March 15, which Toubani Resources, a West Africa-focused mining company, believes will enhance industry certainty. This adjustment will allow the resubmission of applications for search and exploitation permits, but new permits and the transfer of search permits will remain suspended. This follows a moratorium initiated in November 2022 while the government audited mining operations and reviewed the Mining Code of 2019 to ensure better regulation of the sector.

Toubani Resources Managing Director Phil Russo expressed that the gradual normalization of mining permit processes is essential for the industry’s growth, stating that the operational capabilities of Mali’s technical bodies are being restored after several dormant years. Such changes signal a positive direction for existing mining projects to transition from exploration to production, which he considers beneficial for the entire industry.

The update in Mali’s mining code aims to enhance governmental and community revenue interests in mining operations. Notably, similar global trends are observable, with countries like Indonesia reevaluating their royalty structures and certain Australian states modifying laws to protect royalty revenues. Russo remarked that these shifts are part of a broader global movement towards increasing governmental shares from mineral resources, suggesting the mining industry must adapt accordingly.

Demonstrations of the sector’s adaptability are present through agreements reached by companies including Allied Gold, B2Gold, and Robex Resources with the Malian government. Toubani is in the process of finalizing its investment agreement for the Kobada Gold Project, ensuring local community and governmental support, which Russo deems vital for project success.

Once operational, Kobada is projected to deliver significant economic benefits to Mali, including creating approximately 1,500 jobs during construction and over 1,000 during operation, alongside substantial flow-on economic impacts. Kobada is anticipated to become Mali’s fifth largest gold mine, expected to generate direct economic benefits over US$1.2 billion even at lower gold prices. Toubani is preparing the project for readiness by 2025, aiming for a lower capital intensity and strong returns based on favorable gold price projections.

The partial lifting of the mining permit suspension in Mali marks a significant step towards normalizing the mining industry within the country, fostering growth and collaboration between the government and industry stakeholders. Toubani Resources expects to secure a sustainable future for the Kobada Gold Project, which promises substantial economic contributions for Mali. Overall, these developments align with global trends where nations seek greater control and revenue from their natural resources, indicating an evolving landscape for mining operations.

Original Source: mining.com.au