Burkina Faso plans to increase its control over foreign-owned industrial mines, as the country looks to capture a larger share of revenue from its natural resources.
- Burkina Faso plans to increase control over foreign-owned industrial mines to capture a larger share of revenue from natural resources.
- Revised mining code and state-owned mining company SOPAMIB strengthen national oversight and participation.
- The government took control of two industrial gold mines previously owned by Endeavour Mining.
Burkina Faso plans to increase its control over foreign-owned industrial mines, according to its prime minister, as the country looks to capture a larger share of revenue from its natural resources.
Following in the footsteps of neighbours like Mali and Niger, Burkina Faso revised its mining code last year and established a new state-owned mining company, Société de Participation Minière du Burkina (SOPAMIB), to strengthen national oversight and participation in the sector, Reuters reported.
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Burkina Faso used its newly established state-owned mining company, SOPAMIB, to take control of two industrial gold mines previously owned by London-listed Endeavour Mining, in a deal finalized late last year.
In a nationally televised speech on Monday night, Prime Minister Jean Emmanuel Ouédraogo announced that the government intends to further expand its control over the country’s natural resources.
Burkina Faso’s mining sector reforms have raised concerns among investors, but the country’s military-led government argues that change is necessary to maximize revenue from its vast gold reserves and revive an economy strained by years of insecurity.
Gold prices have surged more than 25% this year, driven by global geopolitical tensions and erratic trade policies under U.S. President Donald Trump. In 2023, Burkina Faso, despite ongoing conflict with Islamist militants since 2015, produced over 57 tons of gold.
Major international players in the country include Canada’s IAMGOLD and Australia’s West African Resources Ltd. However, a newly revised mining code now prioritizes local expertise and suppliers, signalling what the government calls a “revolution” in managing the country’s mineral wealth.
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Shifting alliances
Since taking power through two coups in 2022, Burkina Faso’s military-led government has seen its relationships with Western allies deteriorate.
Like its junta-led neighbors Mali and Niger, the country has increasingly turned to Russia for both security support and economic collaboration.
Just last week, the government granted an industrial mining license to Russian company Nordgold for a new gold project.
The project is expected to contribute 51.5 billion CFA francs ($89 million) to Burkina Faso’s state budget over its lifespan, along with an additional 7.06 billion CFA francs to the country’s mineral wealth fund, according to the council of ministers.
