The Government of Mali will partially lift the suspension of mining permits by March 15, 2023, allowing certain applications while maintaining some restrictions. Toubani Resources’ Managing Director Phil Russo noted that this move heralds normalization within the industry and will promote collaboration between sector stakeholders. The Kobada Gold Project aims to deliver significant economic benefits and employment opportunities, with an encouraging feasibility study forecast. This trend of reassessing mining policies mirrors similar movements in other countries globally.
The Government of the Republic of Mali has announced plans to partially lift the suspension of mining permits by March 15, 2023. This decision is expected to provide clarity for the industry, as the Ministry of Mines will allow applications for the renewal of search and exploitation permits as well as for the transition from search to extraction. However, new mining permits and transfers of search permits will remain suspended.
The mining sector in Mali has experienced instability due to a moratorium on new licenses and permits initiated for auditing purposes and a thorough review of the 2019 Mining Code. This suspension was part of broader efforts to rectify the mining register. Phil Russo, Managing Director of Toubani Resources, has indicated that the lifting of the ban heralds a period of normalcy for the mining industry in Mali, which had been disrupted for years.
Mr. Russo stated, “Integral to any mining industry is the normal course of business, just being able to get your licences approved… So for it to now be functioning means the industry… will start to move forward again, and that’s just healthy for everyone.” He emphasized that the renewed process will facilitate better collaboration between the industry and the government, creating certainty regarding permit submission processes.
The focus for Toubani Resources remains the long-term outlook for its Kobada Gold Project, which contains approximately 2.2 million ounces of gold. Mali’s updated mining code aims to enhance the government’s and local community’s interests in mining projects, a trend seen globally, as countries like Indonesia are revisiting their mining royalties.
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.” He believes this theme will persist globally, and he perceives Mali’s new code as aligned with global trends. Recent agreements by companies operating in the region reflect the sector’s adaptability to changes in Mali’s investment framework.
Toubani Resources is finalizing its investment framework for the Kobada Project as a partnership venture while ensuring community and governmental support. Russo asserted, “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?” Meeting both conditions is a positive indicator for project advancement.
The Kobada Project is anticipated to generate over $1.2 billion in economic benefits for Mali and is expected to create approximately 1,500 jobs during construction and over 1,000 during operation. Moreover, Russo remarked that the project holds substantial significance for the local economy, stating, “the flow-on effects are enormous.”
Upon its completion, the Kobada Project will emerge as Mali’s fifth-largest gold mine. An updated Definitive Feasibility Study reveals it as one of the low-cost development projects in the sector, with an estimated upfront cost of $216 million and a post-tax NPV of $635 million, with a 58% IRR at a gold price of $2,200 per ounce. The anticipated all-in sustaining cost is pegged at $1,004 per ounce, with a roadmap toward achieving shovel-ready status by 2025.
In summary, the partial lifting of the suspension on mining permits in Mali marks a pivotal moment for the industry, fostering a return to normalcy and enhancing collaboration between government and mining entities. The Kobada Gold Project stands as a beacon of potential economic benefit for Mali, emphasizing the importance of community and government support in successful mining operations. Overall, the evolving landscape of Mali’s mining sector reflects broader global trends, necessitating stakeholder adaptability as countries reassess their mining policies.
Original Source: mining.com.au
