Burkina Faso’s military junta, led by President Ibrahim Traoré, is considering the revocation of mining permits held by several foreign companies as part of its strategy to increase gold production and enhance national autonomy.
In a recent radio address commemorating two years since the coup that brought him to power, Traoré expressed skepticism about the necessity of foreign involvement in the country’s gold mining sector.
“We know how to mine our gold and I don’t understand why we’re going to let multinationals come and mine it,” he stated.
While Traoré did not specify which companies might lose their permits, the announcement has raised concerns among international mining firms operating in Burkina Faso, including London-listed Endeavour Mining, Australia’s West African Resources, Russia’s Nordgold, and Canada’s Orezone Gold Corporation.
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These companies have been grappling with operational challenges due to increasing insecurity in the region, particularly from militant groups linked to Al-Qaeda and ISIS.
The political instability in Burkina Faso has escalated since the junta’s rise to power, following widespread public discontent over security issues.
The junta’s attempts to curb violence have been met with challenges; in 2023 alone, over 8,000 people reportedly died due to violent attacks, further complicating the operational landscape for foreign mining firms.
Despite these challenges, gold remains Burkina Faso’s primary export and a crucial component of its economy, which saw growth of 3.2% in 2023, recovering from 1.5% in the previous year.
The Ministry of Mines reported a 1.5% decrease in gold production in 2023, totaling 57,300 kilograms, compared to an all-time high of 67,126 kilograms in 2021.
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The decline in output can be attributed to both the increasing violence and the political turmoil that has plagued the nation.
The junta’s move to prioritize local mining initiatives aligns with its broader strategy of strengthening ties with non-Western nations, particularly Russia, while distancing itself from longstanding Western allies.
