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Ivory Coast awards 11 new mining licenses to boost exploration

Ivory Coast has announced that it has issued 11 new exploration permits for gold, copper and cobalt to both local and international mining companies. The world's largest cocoa producer is looking to attract more investment to its booming mining industry as it diversifies.

Amadou Coulibaly, the government's spokesperson, announced the new permits after they had been approved by a cabinet on Wednesday.

The Ivory Coast is positioning itself as an investor-friendly, stable mining destination, amid increasing regulatory uncertainty in Mali, Burkina Faso, and Niger where military juntas tighten control over mining assets.

Eight gold exploration companies are included in the permits valid for four-years, including Resolute Exploration Cote d'Ivoire which is developing Doropo Gold Mine in northern Ivory Coast and Tieto mineral which operates the Abujar mine west of Abidjan, the economic capital.

Three more exploration permits have been awarded in the areas of chrome, nickel, cobalt, manganese and copper.

According to Mines Minister Mamadou Sangafowa Coulibaly, the gold production in Ivory Coast will increase from 10 tonnes in 2012 to more than 58 tonnes by 2024 and 62 tonnes by 2025.

New mines, such as Lafigue, operated by Endeavour Mining are responsible for the increase. The government wants to reach 100 tonnes per year by 2030.

According to the Professional Group of Miners of Cote d'Ivoire (a lobby group), the mining sector contributes 4% of GDP today, up from 1.5% a ten years ago. It has also attracted billions of dollars in investment. Canadian mining companies Barrick, Perseus Mining and Roxgold, as well as Fortuna Mining, operate in Ivory Coast.

Coulibaly explained that the new permits are part of a strategy aimed at unlocking mineral potential, and diversifying the economy away from cocoa. (Reporting and writing by Bate Felix, Maxwell Akalaare Adombila, Editing by Robbie Corey Boulet and Elaine Hardcastle).

(source: Reuters)