Read Time: 10 Minutes
In an exclusive, in-depth interview, Andrew Chubb, CEO of Awalé Resources, delves into the intricacies of mining and exploration in Côte d’Ivoire. With nearly a decade of experience in this emerging market, Chubb provides a detailed analysis of the political, social, and economic factors shaping the country’s mining landscape. From regulatory frameworks and permitting processes to the untapped geological potential of the Birimian Greenstone Belt, this interview covers the essential elements that are drawing major institutional investors to West Africa.
Côte d’Ivoire is following a trajectory similar to Ghana’s two decades ago. The potential here is incredible, and we’re just scratching the surface,” Chubb concluded.
Andrew Chubb, CEO Awalé Resources (TSX-V: ARIC)
Main Takeaways
- Côte d’Ivoire’s political maturity and stable regulatory framework make it an attractive mining jurisdiction, distinct from its West African neighbors.
- The country’s infrastructure is rapidly improving, with sealed roads, electrification, and secure borders, facilitating both exploration and development.
- Permitting in Côte d’Ivoire is streamlined compared to Western countries, with stakeholder engagement playing a key role in securing local and governmental approval.
- Institutional investors are increasingly comfortable with investing in Côte d’Ivoire, evidenced by major capital raises from large funds like Franklin Templeton.
- Côte d’Ivoire has significant untapped geological potential, with rapid timelines from discovery to production, as seen in recent mining projects like Endeavor’s Lafigué.
Why is Côte d’Ivoire Attracting Attention as a Mining Jurisdiction?
Chubb paints a picture of Côte d’Ivoire as one of West Africa’s most promising economic hubs. The country, which has historically been a powerhouse in agriculture, oil, and gas, has seen mining become an increasingly significant part of the economy over the last 12 years.
But why Côte d’Ivoire, and why now?
“Côte d’Ivoire has grown to become the economic powerhouse of Francophone West Africa, and mining is now a big part of that story,” Chubb explains. “The country’s economy is diversified, but mining is growing exponentially, particularly since regulatory changes post-2012.”
He elaborated on the overall economic strength, citing consistent GDP growth of 6-7% annually, which has contributed to a burgeoning middle class and a stable economic environment. The country’s infrastructure, especially its two major ports in Abidjan and San Pedro, plays a critical role in facilitating international trade and investment.
However, he emphasized that not all countries in West Africa are alike. Chubb pointed out the significant political and economic differences between Côte d’Ivoire and its neighbors, like Burkina Faso and Mali, where instability has been more prevalent.
“You have to remember, West Africa is a massive region, and each country has its own history and political nuances. Côte d’Ivoire has strong institutions and a growing middle class, making it much more politically stable and economically diversified.”
Can Côte d’Ivoire Change Overnight Like Other West African Nations?
Many potential investors worry that political stability in African countries can be fleeting, especially given recent upheavals in neighboring countries. Chubb was quick to dismiss concerns about Côte d’Ivoire facing an “overnight” political crisis similar to those seen in places like Burkina Faso.
“What people often perceive as ‘overnight change’ is really the result of long-term instability coming to a head,” Chubb said. “Côte d’Ivoire is different. The country has robust institutions and a level of political maturity that makes such rapid shifts far less likely.”
Chubb acknowledged that while other West African nations like Burkina Faso, Mali, and Niger have experienced sudden changes, these are often the result of deeply rooted political and social issues. Côte d’Ivoire, however, has consistently moved in a more stable direction since the post-2010 election crisis, and recent investments reflect growing confidence in the country’s stability.
“There’s a significant difference in political maturity between Côte d’Ivoire and its neighbors,” he added. “This stability is why we’re seeing major investments in the region, not just in mining but across industries like agriculture, oil and gas, and public-private partnerships for infrastructure.”
How Secure is Côte d’Ivoire for Mining Operations?
When asked about the safety of operating in Côte d’Ivoire, Chubb painted a reassuring picture. He frequently visits the country and described a level of normalcy in day-to-day life that is akin to Western cities.
“I can walk out of our office in Abidjan, go to the local market, grab a beer, and watch a football game without any concern,” he shared. “It’s a cosmopolitan city with a mix of African and Western flavors.”
In the field, Chubb explained that his team operates without needing heavy security measures, a significant departure from many African mining jurisdictions where armed guards are a necessity. He emphasized that while the northern Sahelian countries face significant challenges, Côte d’Ivoire has implemented strong security measures along its borders to prevent the spread of instability.
“The borders are secure. Military and police forces are stationed at key locations, and there’s constant communication with local authorities,” Chubb noted. “We don’t feel unsafe in the country, and that’s a testament to the government’s commitment to maintaining stability.”
How Does the Permitting Process Work in Côte d’Ivoire?
The permitting process in Western countries like the U.S. and Canada can often be a bureaucratic nightmare, leading to long delays in project timelines. However, Chubb emphasized that Côte d’Ivoire offers a much more streamlined approach, which is part of what makes the country so attractive to foreign investors.
Chubb explained that the key to securing a drilling permit is local stakeholder engagement. Before beginning work, companies must consult with landowners, local communities, and regional agricultural ministries to ensure minimal disruption.
“We always start with local engagement. We communicate with the people who own the land and make sure they’re on board. There’s even a framework for compensating farmers if we damage crops like cashew trees,” Chubb said.
He added that while the process is regulated, it is not burdensome. Companies must prove their financial and technical capabilities to the government before being granted exploration licenses. From there, the permitting process moves forward in a transparent and timely manner.
“There’s a regulatory framework in place, which makes it much easier to operate. You’re not dealing with the kind of red tape that can stall projects for years in places like the U.S. or Canada. It’s one of the reasons foreign investment is pouring into the country.”
What Are Realistic Timelines for Bringing a Project to Production?
When asked about how quickly a mining project can go from discovery to production, Chubb pointed to Endeavor Mining’s recent success in Côte d’Ivoire. The company took the Lafigué project from maiden resource to production in just six years, a timeline unheard of in many Western jurisdictions.
“Endeavor Mining started their Lafigué project in 2015, published their maiden resource in 2018, and by 2024 they’ll be in production with a target of 100,000 ounces of gold,” Chubb explained. “That’s a six-year timeline from discovery to production.”
In contrast, Chubb highlighted how mining projects in the U.S. can take up to 29 years to move from discovery to production, making Côte d’Ivoire a more attractive option for companies looking to expedite project timelines.
“Six years is incredibly fast in this industry,” he added. “It shows how supportive the Côte d’Ivoire government is of mining projects and how quickly things can move when the right framework is in place.”
Is Water Supply a Challenge for Mining in Côte d’Ivoire?
Water is a critical element in mining operations, and Chubb was asked how Côte d’Ivoire fares in this regard. He was quick to reassure that water is not an issue, particularly in the southern regions where Awalé operates.
“Côte d’Ivoire is not a desert. We have a monsoon season that brings meters of rain over three months. Groundwater is abundant, and there’s significant opportunity for water catchment systems that can support not just mining operations but also local agriculture,” Chubb said.
He added that in the environmental and social impact assessments (ESIA) required for project development, water supply is a major focus, but one that doesn’t present significant challenges in Côte d’Ivoire.
“When you compare it to places like Nevada, where securing water permits can be a huge challenge, Côte d’Ivoire is relatively easy. You just need to meet the ESIA requirements, and you’re good to go.”
What is the Infrastructure Like in Côte d’Ivoire?
While Côte d’Ivoire’s capital, Abidjan, is a modern city with well-developed infrastructure, the northwestern part of the country, where Awalé’s projects are located, is less developed. However, Chubb noted that infrastructure is rapidly improving.
“Odienné, where we operate, is one of the least developed regions in Côte d’Ivoire, but we still have sealed roads, electrification, and good water supply in even the smallest villages,” Chubb explained.
He emphasized that while some areas may still need infrastructure upgrades, the government is investing heavily in improving roads, power lines, and other critical infrastructure to support economic growth.
“We’re seeing new roads being built, including one from Odienné to Seguela, where Fortuna Silver has an operating mine. High-voltage power lines are only 100 kilometers away, and plans are in place to bring that power into the region,” he said.
What is the Geological Potential of Côte d’Ivoire?
With 33% of the Birimian Greenstone Belt located in Côte d’Ivoire, the country has immense untapped geological potential. Yet, as of 2023, Côte d’Ivoire only accounts for 10% of the 300 million ounces of gold found across West Africa.
“That figure is already outdated,” Chubb acknowledged. “There’s been so much development in Côte d’Ivoire since I first started using that number in 2015.”
Chubb attributes the slower early growth to regulatory issues before 2012, but now that the framework has been established, investment dollars are flowing in rapidly.
“Before 2012, there were only three properly operating mines. Now, we have six to eight, with several more in development. Companies like Montage Gold and Endeavor Mining are leading the way, and the potential for further discoveries is massive.”
Is There a Risk of Resource Nationalism?
As interest in Côte d’Ivoire’s mining sector grows, there’s always the looming question of whether the government could turn to resource nationalism, a concern in other parts of Africa. However, Chubb is confident that Côte d’Ivoire’s political maturity will prevent such issues.
“The government understands that more operating mines are better for the economy than trying to nationalize the industry. There’s a tacit understanding between the state and operators that cooperation is key,” Chubb said.
He also emphasized that international companies are taking a more responsible approach to local engagement, helping to further reduce the risk of resource nationalism.
“Companies now invest heavily in training local staff and developing the local workforce, which only strengthens the relationship between the state and private operators.”
What About the Role of Artisanal Mining?
Artisanal mining is prevalent in many parts of West Africa, and Côte d’Ivoire is no exception. Chubb acknowledged that while artisanal mining does take place in Awalé’s project areas, it has not been a significant issue.
“Artisanal mining is a part of life in most of Africa, but Côte d’Ivoire has set aside specific artisanal corridors where it’s legal. Outside of those areas, it’s technically illegal, but we don’t try to create problems for the artisanal miners,” Chubb explained.
He emphasized that stakeholder engagement from the beginning of a project is critical in managing artisanal mining activities.
“We’ve had open communication with the local communities since day one. They understand the importance of not letting artisanal mining get out of control because it can disrupt their own way of life. We try to keep things at an artisanal level rather than letting it grow into something more industrial.”
How Are Institutional Investors Responding to Côte d’Ivoire?
Chubb confirmed that institutional investors are increasingly comfortable with putting their money into Côte d’Ivoire’s mining sector. He cited Awalé’s own capital raises as evidence of this growing confidence.
“In our last raise, about 80% of the funds came from institutional investors. Franklin Templeton was our lead order, which speaks to the level of comfort large institutions have with Côte d’Ivoire as a jurisdiction,” Chubb said.
He also mentioned that major players like the Lundin Group and Fortuna Silver have made significant investments in the country, further solidifying its appeal to the global mining community.
Awalé Resources CEO Interview with Andrew Chubb
This is a very brief summary of what was a lengthy interview. Don’t rely on this summary. Watch the full interview which is linked above.
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