A new mining law has officially taken effect in Burkina Faso, raising the government’s automatic stake in major gold mining projects from 10% to 15% as part of a broader effort by Ouagadougou to increase national control and revenue from the country’s gold sector.
The legislation, which was passed in August of last year, is now being applied to large-scale operations such as those run by Australian firm West African Resources. The increase in state ownership does not alter existing contractual frameworks and does not require the government to make any additional investments to gain the extra shares.
Gold remains the country’s most vital export, accounting for more than 70% of Burkina Faso’s export revenue. The nation is currently the fourth-largest gold producer in Africa.
In addition to the automatic increase, the law includes provisions that allow the government to acquire additional paid equity stakes, potentially bringing state ownership in certain mining ventures up to 45% if such stakes are negotiated or purchased.
The law’s implementation coincides with expanded activities by Société de Participation Minière du Burkina (SOPAMIB), the state-owned mining company. Over the past year, SOPAMIB has assumed control of several assets previously managed by Western firms, including the Boungou and Wahgnion gold mines, which were operated by the UK-based Endeavour Mining.
Since taking power in a January 2022 coup, the military-led government of President Ibrahim Traoré has prioritized reclaiming control over the nation’s natural resources, aiming to reverse decades of Western dominance over West Africa’s mining industries since the end of colonial rule.
In line with its regional partners Mali and Niger—members of the Alliance of Sahel States (AES)—Burkina Faso has expelled French, American, and other Western military forces while pushing for greater ownership and profit from its natural wealth.
Meanwhile in neighboring Mali, a court ruling is expected tomorrow concerning the Loulo-Gounkoto gold mining complex, which is 80% owned by Canadian mining giant Barrick. The mine has been shut down since January amid a tax dispute with Malian authorities. In April, police raided Barrick’s offices, and the government is now seeking to install a provisional administration to resume operations.