Burkina Faso has completed the transfer of five gold mining assets to the country’s state-owned miner, according to a decree published late on Wednesday, finalising a process that began in August to increase control over its mineral resources.
Like its neighbours Mali and Niger, Burkina Faso is seeking to control a larger share of its resources after revising its mining code last year. It has established the Société de Participation Minière du Burkina (SOPAMIB) as a vehicle to own, manage and operate strategic mining assets.
The five assets transferred to the state are two operating gold mines and three exploration licences held by subsidiaries of London-listed Endeavour Mining (EDV.L), opens new tab and Lilium, including Wahgnion Gold SA, SEMAFO Boungou SA, Ressources Ferké SARL, Gryphon Minerals Burkina Faso SARL, and Lilium Mining Services Burkina Faso SARL.
A deal to sell the Endeavour assets to Lilium had stalled, leading the state to step in.
“This acquisition is in line with the state’s policy of sovereign ownership of mining resources to optimise exploitation for the benefit of the population,” the decree said.
Burkina Faso is Africa’s fourth largest gold producer, producing more than 57 tons of gold in 2023. It plans to continue with the nationalisation efforts, which it has said will deliver more income for the state, particularly after a 27% surge in the price of gold this year.
However, the reforms have alarmed Western investors, which also include Canada’s IAMGOLD (IMG.TO), opens new tab, Nordgold and Australia’s West African Resources Ltd (WAF.AX), opens new tab.
Discussion about this post