Burkina Faso has revoked the operating licence for the Taparko gold mine, citing legal disputes and unmet socio-economic obligations by its managing company, Taparko Mining.

The government highlighted the company's potential inability to fulfil its objectives due to ongoing legal issues.

By invoking Article 126 of the national Mining Code, the authorities aim to reallocate the mine's resources to support public revenue and address security challenges.

The mine has been inactive since April 2022, after Russia's Nordgold halted its operations due to escalating security threats, which hampered access to the site.

Located near the borders of Niger, Burkina Faso and Mali, the mine's closure has significantly affected output.

Gold sales plummeted from 2.92 tons in 2022 to just 353kg, with a significant decrease in revenue from CFA FR94.48bn ($179m) to CFA FR12.61bn during the same year.

In May 2023, Malian mining operator Skygold Resources announced plans to restart operations at the Taparko site.

The company aims to reintegrate former employees, beginning with the processing of existing ore stocks and expanding operations as the security situation allows.

In July last year, the Burkinabe Government, during a Council of Ministers meeting, agreed to renew the industrial exploitation permit for the Taparko gold mine for a further five years.

The Taparko gold complex consists of several assets, including the Taparko and Bouroum mines, featuring a processing plant, six open pits and a proposed underground mine.

According to the 2023 Burkina Faso EITI Report, the country's extractive industry, primarily focused on gold, achieved record production of 57.35 tonnes in 2022.

The sector accounted for 14.8% of Burkina Faso's gross domestic product, 75.5% of exports, and created 25,000 direct jobs.

The report also underscored the necessity for improved transparency in licensing processes, export information and cost auditing to ensure sector sustainability.