Burkina Faso has officially completed the handover of five gold mining assets to its state-owned mining company.
- Burkina Faso finalized the transfer of five gold mining assets to its state-owned mining company SOPAMIB.
- The reforms raised the country’s free-carried equity stake in gold mining projects from 10% to 15%.
- Assets included two operating mines and three exploration licenses formerly owned by entities of Endeavour Mining and Lilium.
Burkina Faso has officially completed the handover of five gold mining assets to its state-owned mining company, marking a significant step in the country’s push for greater control over its natural resources.
The transfer, confirmed through a decree published late Wednesday, concludes a process initiated in August 2023.
As part of the reforms, Burkina Faso recently increased its free-carried equity stake in key gold mining projects from 10% to 15%, reinforcing its commitment to securing a larger share of the country’s mineral wealth.
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To manage these newly acquired strategic assets, the government established the Société de Participation Minière du Burkina (SOPAMIB), which will be responsible for owning, operating, and overseeing key mining operations across the country, Reuters reported.
The five assets transferred to Burkina Faso’s state ownership include two operating gold mines and three exploration licenses previously held by subsidiaries of London-listed Endeavour Mining and Lilium. These include Wahgnion Gold SA, SEMAFO Boungou SA, Ressources Ferké SARL, Gryphon Minerals Burkina Faso SARL, and Lilium Mining Services Burkina Faso SARL.
A planned sale of Endeavour’s assets to Lilium had stalled, prompting the government to intervene and take control, further cementing its push for a greater national stake in strategic mining operations.
Burkina Faso’s status as a gold producer has grown significantly over the past two decades, making it one of Africa’s leading gold-producing countries.
The nation ranks fourth in gold production after Ghana, South Africa, and Sudan. Gold is Burkina Faso’s most valuable export, contributing over 70% of export earnings and serving as a cornerstone of its economy.
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Burkina Faso follows Mali and Niger’s path
Burkina Faso is following the lead of regional peers Mali and Niger by tightening control over its extractive industries, aiming to boost state revenues amid a 27% surge in gold prices this year.
The government has signalled plans to push ahead with nationalization efforts, arguing they will yield greater economic benefits for the country.
However, the shift has raised concerns among Western investors, including Canada’s IAMGOLD, Russia-linked Nordgold, and Australia’s West African Resources Ltd, who worry the reforms may undermine investment certainty and project stability in one of Africa’s top gold-producing regions.
