New mining code reopens Mali for business: Toubani

The State of Mali’s implementation of a new mining code will not only reopen the West African country up for business, but also restore stability and investor confidence in its mining industry, according to Toubani Resources.

The gold developer says the adoption of the 2023 Mali Mining code reaffirms the Republic’s commitment to mining and its mission to return to prominence as one of West Africa’s top gold producers.

In November 2022, the State of Mali issued a moratorium on all new licences, permits and approvals in the country while it audited operating mining companies and undertook a comprehensive review of its 2019 Mining Code. But the new code is now seen as a key step to reopening Mali’s mining sector.

While the 2022 moratorium did not directly impact Toubani and its 2.2 million-ounce Koboda gold project, given that it already had all the necessary permits to continue its activities, management says it indirectly caused a slowdown in the overall mining sector.

‘We are optimistic about Mali’s return to prominence as one of West Africa’s top gold producers.’

Toubani Resources chief executive officer Phil Russo

Under the new code, the Mali Government will take a 10 per cent interest in all new mining projects and also grants the State an option to buy an additional 20 per cent within the first two years of any commercial production. An additional 5 per cent interest could also be relinquished to locals should they be immediately affected by mining-related activities.

The company pointed out that the new code aligns Mali’s interest in individual projects with those of surrounding francophone countries. It will now pursue discussions with the State in relation to its potential participation in the Kobada gold project.

Toubani Resources chief executive officer Phil Russo said: “This development not only reaffirms Mali’s commitment to its mining sector but underpins, in our view, a desire to restore confidence among investors and stakeholders. With anticipated resumption in the administration of the mining sector as well as recent resolution of other, company-specific issues, we are optimistic about Mali’s return to prominence as one of West Africa’s top gold producers.”

Kobada sits within the world-renowned Birimian greenstones of West Africa and hosts a 2.2-million-ounce gold resource estimate, with 90 per cent in the higher-confidence indicated resource category and 92 per cent of mineralisation sitting within 200m of the surface.