Burkina Faso to revoke foreign mining permits
Burkina Faso has announced plans to revoke mining permits from certain foreign companies. Junta leader, Ibrahim Traoré, revealed the move and said it aims to boost domestic gold production.
Traoré emphasized that Burkina Faso has the capability to mine its own gold and questioned the continued presence of multinational corporations in the sector. The country, one of the leading gold producers in West Africa alongside Ghana, Mali, and Guinea, is aiming to retain more control over its gold resources.
Goal
The West African region is expected to produce 11.83 million ounces of gold in 2024, though Burkina Faso and Mali are projected to see a collective decline of 5.5% due to factors like lower ore grades and reduced operations.
The announcement led to significant declines in the share prices of several foreign mining companies operating in Burkina Faso, including Endeavour Mining (UK), West African Resources (Australia), Nargold (Russia), and Orezone Gold Corporation (Canada). However, Fortuna Mining, a Canadian firm, clarified that the government has no plans to withdraw its existing licenses. Endeavour Mining also stated that it was unaware of any imminent plans to revoke its licenses and emphasized its strong relationship with the Burkinabe government.
This development follows broader geopolitical shifts in Burkina Faso, where frustrations over security and resource management contributed to the junta’s rise to power in 2022. Since then, the country has distanced itself from Western alliances, forging closer ties with Russia, including a 2023 agreement with Rosatom to build a nuclear power plant.
