Omanghana
Toubani Resources has officially begun construction of the $216 million Kobada Gold Project in southern Mali, signaling continued investor interest in the country’s mining sector despite ongoing regulatory tensions between the government and international mining companies.
The Kobada Gold Project is located in southwestern Mali near the border with Guinea and is expected to become a significant new contributor to the country’s gold output. Construction commenced in mid-March 2026 after the company reached its Final Investment Decision, marking the transition from planning to full-scale development.
According to the company, the project is designed to produce approximately 162,000 ounces of gold annually during its initial operational phase. The mine is projected to operate for about 9.2 years in its first lifecycle, with the potential for future expansion depending on exploration results and market conditions.
Development milestones for the project have already been outlined. Following the investment decision and the launch of construction in March 2026, the first major foundation work is expected to begin in the second quarter. If construction progresses as scheduled, the company is targeting the third quarter of 2027 for its first gold production.
The project is being developed under Mali’s 2023 Mining Code, which introduced significant reforms to the country’s mining sector. The updated code allows Malian state and local investors to hold up to a 35 percent ownership stake in mining projects, up from the previous 20 percent threshold. The changes were designed to increase national participation and ensure greater economic benefits for local communities.
Toubani’s investment comes at a time when Mali’s mining industry has experienced heightened scrutiny and regulatory pressure. Recent disputes between the government and foreign mining firms have raised concerns among investors. One notable case involved Resolute Mining, whose chief executive and several executives were detained in November 2024 during negotiations with authorities, a dispute that ultimately ended with a $160 million settlement payment to the Malian government.
Despite these challenges, Toubani Resources has moved forward with the Kobada project after securing roughly 40 percent of the capital required for development and finalizing an investment protocol with the Malian state. The company has indicated that strong global demand for gold remains a key factor supporting the project’s long-term economic viability.
Mali is one of Africa’s leading gold producers, and the development of the Kobada project is expected to further strengthen the country’s position in the global gold market while contributing to local employment and economic activity in the surrounding region.
Source: Omanghana
