The Government of Mali will partially lift the suspension of mining permits by 15 March, providing more certainty for the industry. West Africa-focused explorer Toubani Resources (ASX:TRE) welcomed the decision, highlighting its positive impact on project approvals.
The move will allow applications for renewing search and exploitation permits, transitioning from search to exploitation, and transferring exploitation permits. However, new mining permits and search permit transfers remain suspended.
The Ministry of Mines introduced the suspension in November 2022 to audit mining operations and review the 2019 Mining Code.
Figure 1: The Government of Mali to partially lift the suspension of mining permits by 15 March
Industry Moves Towards Normalisation
Toubani Resources Managing Director Phil Russo stated that the decision signals a return to normal operations.
“Integral to any mining industry is the normal course of business, just being able to get your licences approved and that technical body of Mali that administers that has not been functioning for several years,” Russo said.
He noted that the resumption of permit approvals would allow projects to progress from exploration to mining.
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“So for it to now be functioning means the industry, the existing industry that is already there and is trying to advance their projects from exploration into mining, now that will start to move forward again, and that’s just healthy for everyone,” he said.
Mali’s Mining Code Aligns with Global Trends
Mali’s updated mining code seeks to increase the government’s share of mining revenues. This approach aligns with global trends, with Indonesia reviewing its royalty structure and Queensland strengthening its coal royalty framework.
“You have to have a long-term view of Africa and I think the larger question about just all these emerging countries wanting a greater share of the pie, that’s nothing new,” Russo said.
Mining Sector Adapts to New Investment Framework
Several mining companies have already reached agreements with the Mali government, including:
- Allied Gold (TSX:AAUC)
- B2Gold (TSX:BTO)
- Robex Resources (TSX-V:RBX)
- Kodal Minerals (LSE:KOD)
- Hummingbird Resources (LSE:HUM)
Toubani Resources is finalising its investment framework for the Kobada Gold Project.
Kobada Gold Project to Boost Mali’s Economy
Toubani Resources remains focused on the long-term development of the 2.2-million-ounce Kobada Gold Project. The project is expected to generate over US$1.2 billion in direct economic benefits for Mali and create:
- Up to 1,500 jobs during construction
- Over 1,000 jobs during operations
Russo emphasised the importance of government and community support.
“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?” Russo said.
Figure 2: The Kobada Gold Project
Kobada Positioned as a Low-Cost Gold Mine
Kobada will be Mali’s fifth-largest gold mine once operational, with an estimated upfront capital cost of US$216 million.
An updated Definitive Feasibility Study completed in October 2024 outlined the project’s financial outlook:
- Post-tax net present value (NPV) of US$635 million at a gold price of US$2,200 per ounce
- Internal rate of return (IRR) of 58% at US$2,200 per ounce
- NPV of US$897 million and IRR of 73% at US$2,600 per ounce
- All-in sustaining cost estimated at US$1,004 per ounce
Toubani is working towards making the project shovel-ready in 2025.
“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,” Russo said.
Gold Market Outlook
Mali remains Africa’s third-largest gold producer, with mining contributing around 8% to GDP and nearly 75% of export revenues. The global gold market, valued at over US$13 trillion in 2023, continues to attract investment.
The lifting of the permit suspension is expected to boost investor confidence and accelerate new developments.
