The State of Mali has adopted the implementation decree of the 2023 Mining Code, which provides Toubani Resources (ASX:TRE) confidence that the issuance of new licences, permits, and approvals of the sector will resume.
The implementation decree of the 2023 Mining Code sets the framework for mining investment in the country, and the adoption of the implementation decree is a welcome step towards a return to regulatory stability for the sector.
Toubani, which has a market capitalisation of $28.44 million, believes the adoption and the resumption of normal course administration of the mining sector, coupled with the recent resolution of other, company-specific issues in Mali, is a “significant” step towards a reopening of the Malian mining sector.
The company notes the mining code aligns Mali’s option to participate in individual projects with those of other surrounding francophone countries.
With the mining code in place, Toubani will continue discussions with the State of Mali on its Kobada Gold Project, as the project is advancing towards an investment decision next year.
CEO Phil Russo says the implementation decree of the 2023 mining code is the last step to finalise the new mining legislation.
“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,” he says.
“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.
“Toubani looks forward to engaging with the State of Mali to advance Kobada, leveraging our strong relationships in country, including with our local communities as well as with the various government authorities, and will do our part to contribute to the economic growth and sustainable development of Mali’s mining industry.”
In November 2022, the State of Mali issued a moratorium on the administration of all new licences, permits, and approvals. The decision aimed to facilitate an audit of operating mining companies, as well as conduct a comprehensive review of Mali’s 2019 Mining Code. The audit and the review process are complete.
On 3 July 2024, Mali adopted the implementation decree of the mining code, which Toubani views as constructive, as it provides stability and guidelines necessary for restoring investment.
It is expected that the implementation decree will be published in the Official Gazette shortly.
Toubani Resources is a developer focused on advancing its gold project in Mali.
Write to Aaliyah Rogan at Mining.com.au
Images: Toubani Resources
