THE government of Burkina Faso has announced a series of amendments to its mining code, aimed at fortifying the nation’s gold reserve and tightening regulation over mining operations. These revisions, discussed in the Council of Ministers meeting on Wednesday, March 20, 2024, underscore the country’s strategic efforts to optimise its lucrative mining sector.
A notable initiative outlined in the new mining code involves the establishment of a national gold reserve. Mining companies operating in Burkina Faso will be mandated to contribute to the formation of this reserve, as revealed in official minutes from the aforementioned council meeting.
Additionally, the revised mining code addresses the marketing aspects of gold and other mineral substances, aligning with the country’s objectives for economic stability and growth.
Recent endeavours in Burkina Faso’s mining sector include the initiation of construction for a national gold refinery in Ouagadougou, commencing in November 2023. This refinery, with a projected capacity to process 400 kilograms of gold per day or 150 tonnes annually, signals the nation’s commitment to enhancing its gold processing infrastr
ucture.
Furthermore, January 2024 saw the inauguration of a tailings treatment plant, marking a pivotal step in the nation’s efforts to optimise gold extraction processes. Concurrently, the government imposed a temporary halt on the export of artisanal gold, underscoring its emphasis on domestic processing and value addition.
Key provisions within the updated mining code mandate mining companies to open up their share capital to local investors and empower regulatory authorities to oversee and regulate mining operations effectively. Notably, the state’s ownership stake in mining ventures has been elevated from 10 percent to 15 percent for licenses issued for large or small-scale mining operations.
Statistical data provided by the ministry responsible for mines highlights the substantial contribution of the mining sector to the national economy. Industrial gold production stood at 57.674 tonnes by December 2022, with artisanal gold production witnessing a notable increase from 266 kg in 2021 to 457 kg in 2022.
Moreover, direct revenue accruing to the state budget is anticipated to rise from CFA430.916bn ($718 million) in 2021 to CFA540.984bn ($902 million) in 2022. Gold export revenues, a cornerstone of Burkina Faso’s economy, are estimated to have surged to CFA2099.1bn ($3.5bn) in 2022, constituting 73.86 percent of total export revenues.
Burkina Faso’s proactive measures to revamp its mining code underscore the government’s commitment to leveraging its mineral wealth for sustained economi
c development and national prosperity.
