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Mali Partially Lifts Mining Permit Suspension to Boost Industry Confidence

Mali will partially lift its mining permit suspension by March 15, 2023, benefiting the industry. Toubani Resources welcomes the decision, emphasizing its importance for project progress. While applications for certain permits will proceed, new mining permits remain suspended. The updated mining code aligns with global trends aiming for increased government revenue share from mining activities. The Kobada Gold Project is expected to be economically significant for Mali, with job creation and substantial investment benefits.

The Government of Mali plans to partially lift the suspension of mining permits by March 15, 2023, which is a positive development for the mining industry. Toubani Resources (ASX:TRE) has welcomed this move as it facilitates project approvals. The lifted suspension will enable applications for renewing search and exploitation permits, and the transition from search to exploitation, while still maintaining a ban on new mining permits and search permit transfers.

Initially imposed in November 2022, the suspension aimed to audit mining operations and review the 2019 Mining Code. Phil Russo, Managing Director of Toubani Resources, emphasized that this decision signifies a return to normal operations and that it will facilitate the advancement of projects from exploration to mining, promoting overall health in the industry.

The updated mining code of Mali aims to increase the government’s share of mining revenues, aligning with global trends seen in countries like Indonesia and Queensland, which are also revising their royalty frameworks. Russo noted that emerging countries are increasingly advocating for a larger share of mining revenues.

Several mining companies, including Allied Gold (TSX:AAUC), B2Gold (TSX:BTO), and Hummingbird Resources (LSE:HUM), have struck agreements with the Mali government. Toubani Resources is advancing its investment framework for the Kobada Gold Project, which is predicted to provide substantial economic benefits to Mali, including direct economic contributions of over $1.2 billion and up to 1,500 jobs during construction.

Kobada is set to become Mali’s fifth-largest gold mine, with an upfront capital cost estimated at $216 million. The recently completed Definitive Feasibility Study projects a post-tax net present value (NPV) of $635 million at a gold price of $2,200 per ounce, with a 58% internal rate of return (IRR). When completed, the mine is projected to deliver immediate benefits to the local communities and the state.

As Africa’s third-largest gold producer, Mali’s mining sector significantly contributes to the economy, comprising about 8% of GDP and nearly 75% of export revenues. With the lifting of the permit suspension, investor confidence is expected to rise, facilitating the progression of new developments in the gold market, currently valued at over $13 trillion.

Mali’s decision to partially lift mining permit suspensions marks a crucial step towards normalization in the mining sector, encouraging project advancement and investment. The updated mining code aims to increase government revenues and aligns with global trends. Toubani Resources’ Kobada Gold Project symbolizes the potential economic benefits for Mali, promising substantial job creation and overall contributions to the nation’s economy. This shift is likely to enhance investor confidence and stimulate future growth in the gold mining sector.

Original Source: colitco.com

Lila Khan

Lila Khan is an acclaimed journalist with over a decade of experience covering social issues and international relations. Born and raised in Toronto, Ontario, she has a Master's degree in Global Affairs from the University of Toronto. Lila has worked for prominent publications, and her investigative pieces have earned her multiple awards. Her insightful analysis and compelling storytelling make her a respected voice in contemporary journalism.

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