Burkina Faso Strengthens Control Over Mineral Resources

According to a report by Mining Weekly citing Reuters, Burkina Faso announced on Wednesday that it had completed the transfer of five gold mine assets to the state-owned mining company, marking a temporary conclusion to its efforts to tighten control over mineral resources since August last year.

Like its neighboring countries, Mali and Niger, Burkina Faso has strengthened its control over resources since revising its mining code last year. The country established the Société de Participation Minière du Burkina (SOPAMIB) as a vehicle to own, manage, and operate strategic mineral assets.

The five assets transferred to the country include two operating gold mines and three exploration licenses, all owned by subsidiaries of Endeavour Mining and Lithium Corporation, namely Wahgnion Gold, SEMAFO Boungou, Ressources Ferké, Gryphon Minerals Burkina Faso, and Lilium Mining Services Burkina Faso.

The suspension of the agreement to transfer Endeavour's assets to Lilium Mining Services compelled Burkina Faso to intervene.

The decree stated, "This recovery aligns with the country's policy on the sovereignty of mineral resources, aiming to optimize their development for the benefit of the people."

Burkina Faso is Africa's fourth-largest gold producer, with gold output exceeding 57 mt in 2023. The country plans to continue advancing the nationalization process, with its government stating that this move will bring more revenue to the state, especially following a 27% surge in gold prices this year.

However, this reform has sounded the alarm for Western investors, including IAMGOLD and Nordgold from Canada, as well as West African Resources Ltd. from Australia.