Mali's adoption of a new mining code is poised to reinvigorate the West African country's mining industry, bringing stability and boosting investor confidence, according to Toubani Resources.

ASX-listed Toubani is an Australian mining company with one project, the Kobada Gold Project in Southern Mali.

In an update, the company praised the decision of the country's military junta to implement the proposed 2023 Mali Mining Code as a "welcome step towards a return to regulatory stability."

“Toubani believes that the adoption of the Implementation Decree and the resumption of normal-course administration of the mining sector, coupled with the recent resolution of other, company-specific issues (ex-Toubani) in country, is a significant step towards a reopening of the Malian mining sector, a vital driver of the country's economy,” it said.

Phil Russo, the company’s CEO, praised the junta’s “commitment to its mining sector”

“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,” Russo said.

In November 2022, Mali stopped issuing new mining licenses and approvals to review and audit current operations under the 2019 Mining Code. The new code stipulates that the Malian government will own 10% of all new mining projects and can purchase an additional 20% within two years of production starting. Additionally, 5% of the interest can be allocated to local communities affected by mining.