Burkina Faso, a prominent gold producer in Africa, is reportedly weighing the option of revoking mining permits held by several foreign companies. In a move that reflects the country’s increasing political instability, the military junta led by Ibrahim Traoré is looking to take control of various mining operations to enhance domestic gold production.
According to reports from Reuters, the junta’s plans were revealed over the weekend, though specific companies facing permit revocations were not disclosed. However, companies such as London-listed Endeavour Mining, Australia-based West African Resources, Russia’s Nordgold, and Canada’s Orezone Gold are currently active in the country.
West African Resources holds a 90% stake in the Sanbrado gold project, where production began ahead of schedule in March 2020, with the Burkinabe government retaining a 10% interest.
Political instability
Burkina Faso’s political landscape has been tumultuous, particularly following a military coup in 2022 that ousted Lieutenant Colonel Paul Henri Sandaogo Damiba. Captain Traoré subsequently assumed the role of transitional president. The junta has sought to strengthen ties with Russia, distancing itself from some Western allies.
Despite the turmoil, Burkina Faso’s economy is projected to grow by 3.2% in 2023, a significant increase from 1.5% in 2022, largely driven by the services sector, which constitutes 48% of the GDP and is bolstered by public sector expansion. However, ongoing political unrest has contributed to a decline in gold production over the past year.
Declining gold production
The Ministry of Mines, Quarries, and Energy has reported a 1.5% drop in gold output for 2023, totaling 57,300 kilograms. This follows a peak production level of 67,126 kg in 2021, which marked a dramatic increase from just 209 kg in 2002.
Artisanal and small-scale mining remains a critical livelihood for many Burkinabes, with over 430,000 individuals employed across more than 440 mining sites. As the government navigates its political and economic challenges, the future of the mining sector—and its significant contribution to local employment—hangs in the balance.
