Burkina Faso Deepens State Control Over Gold Sector with New Law

Ouagadougou, Burkina Faso — In a decisive move to boost resource sovereignty, Burkina Faso’s military-led government has announced plans to extend the nationalisation of foreign-owned gold mining assets. The decision, approved at a cabinet meeting last month, follows the transformation of the revised mining code into law in 2024 and builds on recent efforts by the state mining company, SOPAMIB, to exert greater control over national resource wealth .

Burkina Faso has already assumed control of two major gold mines in Boungou and Wahgnion from international operator Endeavour Mining, using SOPAMIB. The acquisition was finalized in late 2023 and valued at around $80 million, with the state agreeing to pay $60 million plus a 3% royalty on future output. According to Prime Minister Jean Emmanuel Ouédraogo, further acquisitions are set to follow as the government seeks to integrate more assets into domestic ownership.

The nationalisation policy is part of a broader economic strategy intended to increase revenues from Burkina Faso’s gold boom—an asset that generated 57 tonnes of output in 2023—and strengthen economic autonomy amid internal security threats from Islamist insurgencies.

Under the leadership of Captain Ibrahim Traoré, Burkina Faso has pursued value-added strategies, including launching construction for its first gold refinery in November 2023. The refinery aims to process up to 400 kg of gold daily and create significant employment opportunities. In parallel, the government has suspended permits for artisanal export, enforcing quality control and curbing smuggling—an effort intended to formalize the informal gold economy.

The recent policies echo a broader regional trend in military-led nations like Mali and Niger, which also assert greater sovereignty over natural resources by renegotiating mining contracts, revoking foreign licenses, or pursuing nationalisation.

Burkina Faso’s pivot away from Western influence is further underlined by its withdrawal from ECOWAS and closer alignment with Russia, particularly in security and mining sectors.

Economists believe the nationalisation drive could boost government income, with state collection of gold rising to over 11 tonnes in Q1 2025, compared to eight tonnes in 2024 . Additionally, foreign interest remains alive: Canada’s Orezone is expanding the Bomboré mine, while West African Resources is developing the Kiaka project to launch 200–250 koz annually by 2025.

However, nationalisation has raised red flags among international investors concerned about regulatory instability. Critics warn that the risk of abrupt state takeovers could dampen foreign direct investment in a country already suffering from security challenges.

Despite these concerns, the government’s message is clear: Burkina Faso must capture the full benefits of its gold wealth—notably through royalties, domestic industry development, and strategic resource policy. As SOPAMIB continues to absorb more assets and the gold refinery project progresses, Ouagadougou’s vision of national economic empowerment is rapidly taking shape.

Burkina Faso extends its gold nationalisation drive, aiming to boost state control, establish a refinery, and formalise the gold sector amid regional security and economic challenges.

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