Burkina Faso completes nationalization of five gold mining assets

The government of Burkina Faso has officially completed the nationalization of five key gold mining assets, transferring them to the state-owned mining company, Société de Participation Minière du Burkina (SOPAMIB).

The move, enacted through a recent government decree, forms part of a broader national strategy to increase sovereign control over the country’s mineral resources. Burkina Faso joins regional peers such as Mali and Niger in restructuring its mining sector to secure greater benefits from natural resource exploitation.

The nationalisation process, which began in August last year, included the acquisition of two operational gold mines and three exploration permits previously managed by Endeavour Mining and subsidiaries of Lilium. The state stepped in following disruptions to the original transactions involving these assets.

National policy

Authorities described the action as aligned with national policy aimed at enhancing sovereign ownership and optimising resource exploitation for public benefit. The revised mining code, introduced last year, mandates increased use of local labour and suppliers, marking a notable shift in governance of the mining sector.

With gold production exceeding 57 tonnes in 2023, Burkina Faso ranks as Africa’s fourth-largest gold producer. The government hopes that the nationalisation initiative, combined with a 27% surge in global gold prices this year, will significantly boost state revenues.

However, the reforms have sparked unease among foreign investors, including major players such as Canada’s IAMGOLD, Russia-linked Nordgold, and Australia’s West African Resources, who have expressed concerns over the implications for their future operations in the country.