The government of Burkina Faso has completed the nationalisation of five gold mining assets, transferring ownership to the state-owned miner, Société de Participation Minière du Burkina (SOPAMIB), according to a report by Reuters.
This strategic move, finalised via a recent decree, is part of a broader initiative to increase the nation's control over its mineral wealth.
Following in the footsteps of neighbouring countries Mali and Niger, Burkina Faso revised its mining code last year to assert greater authority over its natural resources.
The establishment of SOPAMIB is a critical step in managing and operating key mining assets within the country.
The nationalisation process began last August and has resulted in the acquisition of two mines formerly owned by Endeavour Mining.
In April, Burkina Faso revealed its intention to further increase government ownership in several industrial mines operated by foreign entities, aiming to boost the country's earnings from its mineral wealth.
The latest assets transferred include two operational gold mines and three exploration licences previously held by Endeavour Mining and Lilium subsidiaries.
The transaction involving Endeavour's assets and Lilium was interrupted, prompting the state's intervention.
“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 stated.
Burkina Faso's new mining code emphasises the importance of utilising local expertise and suppliers, indicating a significant shift in how the country manages its mineral resources.
As Africa's fourth-largest gold producer, with more than 57 tonnes of gold produced in 2023, Burkina Faso anticipates that these nationalisation efforts will increase state revenue, especially after a 27% rise in gold prices this year.
On the other hand, these reforms have raised concerns among Western investors, including companies like Canada's IAMGOLD, Nordgold and Australia's West African Resources, who are apprehensive about the impact on their operations.
