par Business AM
published on Monday October 7, 2024 has 18:15 •
2 min read
Key information
- President Traoré plans to revoke mining permits held by foreign companies.
- Burkina Faso aims to mine gold independently, calling into question the need to rely on multinational companies.
- The country relies heavily on gold exports, a sector plagued by insecurity and attacks attributed to terrorist groups.
Burkina Faso’s leader Ibrahim Traore announced plans to revoke mining permits held by foreign companies during a radio speech commemorating the second anniversary of his coup. Traore highlighted the country’s ability to mine gold, questioning the need to allow multinationals to participate in the process. This is reported by Reuters.
He stated unequivocally that mining permits would be withdrawn, but stopped short of disclosing specific targets or providing further context. Burkina Faso relies heavily on gold exports, a sector plagued by increasing insecurity since the junta came to power in 2022. The junta’s actions, including severing ties with Western allies and continuing to closer relations with Russia, have further complicated operations within the mining industry.
Impact of the junta’s actions
Foreign companies operating in Burkina Faso include Endeavor Mining (listed in London), West African Resources (based in Australia), Nordgold (based in Russia) and Orezone Gold Corporation (based in Canada). The security situation has deteriorated significantly in 2023, with thousands of deaths reported following attacks attributed to groups affiliated with Al-Qaeda and the Islamic State. Despite the junta’s promises to stem these threats, violence has exploded, according to data from the US-based crisis monitoring group ACLED.
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