(Ecofin Agency) - Mali has put a hold on issuing new mining titles until 2022 and introduced a new mining code in 2023, creating uncertainty for mining companies. However, with the recent release of decrees to implement the new code, the outlook is improving.

On November 28, Canadian mining company Desert Gold announced plans to publish a preliminary economic assessment for its SMSZ gold project in early 2025. This reflects a growing interest among companies to explore new gold deposits in Mali after the country adopted a new mining code.

For months, mining firms in Mali faced uncertainty due to regulatory changes, including suspending new permits. Now that the new mining code is in place and its decrees have been published, companies are preparing to submit their development plans. British firm Cora Gold, which operates the Sanankoro project, is among those.

Last September, Cora CEO Bert Monro said he was optimistic about recent advancements in Mali, despite the persistence of the permitting moratorium. Monro had said the advancements could pave the way for lifting the moratorium. He then assured that the company is well-prepared for future endeavors at the Sanankoro project and corporate scales. Desert Gold's preliminary assessment will help clarify the asset’s potential. At present, it is estimated to hold over one million ounces of gold. 

Toubani Resources is also progressing with discussions about its Kobada gold project, which is affected by the new mining code. Although Toubani has a permit from the previous code, terms may be revised.

Developing new gold deposits in Mali could significantly boost production, which is expected to decline in 2024. The government targets industrial gold production of 57.3 tonnes this year, down from 66.5 tonnes in 2023. Mali still has estimated reserves of 731 tonnes as of 2024, supporting an average annual output of 65 tonnes over the next 11 years.

Emiliano Tossou