Burkina Faso records drop in gold output
Burkina Faso has recorded a decline in gold output. Ministry of Mines, Quarries and Energy confirmed the report and said that gold output fell 1.5% in 2023 to a low of 57.3 tonnes.
The ministry attributed the drop to a combination of political instability, security challenges, operational issues faced by major companies, disruptions in supply chains, and government regulations which have created a challenging environment for the country’s gold industry, impacting both production levels and economic prospects.
Reasons for decline rate
Burkina Faso has faced significant political instability, including two military coups in 2022 and ongoing terrorist insurgency in the Sahel region. These factors have created a shaky environment for business operations, leading to the closure of mining companies and disruptions in production.
Due to the security challenges and political instability, several mining companies closed their operations in the country. The closure of six mining companies in 2022 and an additional one in 2023 further impacted gold production.
Terrorist attacks have disrupted supply chains for the gold mining sector, making it difficult to transport fuel and other essential materials to mining sites. This has further hampered production. On the other hand, the government’s decision to halt approval of export permits for small-scale gold producers in an effort to better organize the marketing of precious substances is likely to impact gold production figures for 2024. It could create delays or hurdles for small-scale producers, affecting overall output.
