BURKINA Faso’s military junta has taken a significant step in the country’s mining sector by suspending the issuance of export permits for artisanal and semi-mechanised gold, along with other precious commodities. In a statement released on February 20, the junta underscored the necessity for a sector cleanup and a more organised approach to marketing valuable substances.
‘This suspension follows the need to clean up the sector and reflects the government’s desire to better organise the marketing of gold and other precious substances,’ the junta stated.
While the duration of the suspension remains unspecified, mining groups possessing exportable materials are directed to liaise with the National Society for Precious Commodities (SONAP) for compensation, according to the junta’s statement.
‘Mining groups who have material to export are invited to reach out to the National Society for Precious Commodities (SONAP) for compensation,’ the statement read.
Gold stands as Burkina Faso’s primary export, contributing to 37 percent of total exports in 2020, making mining a vital source of employment. However, ongoing challenges such as a pervasive Islamist insurgency and political instability have impeded exploration efforts and diminished gold output in recent years. Consequently, numerous mines have ceased operations, while others experience reduced productivity.
‘The suspension aims to address the challenges faced by the mining sector and enhance its contribution to the country’s economic development,’ a spokesperson for the junta commented.
The country’s precarious security situation culminated in two military coups in 2022, underscoring the frustration stemming from escalating insecurity. The repercussions of the new export suspension on the mining industry’s dynamics remain uncertain. Notably, artisanal production constitutes nearly half of industrially produced gold in the West African Sahel region, which encompasses Burkina Faso, according to a 2019 Crisis Group report.
‘The impact of the suspension on artisanal mining and the broader economy is yet to be determined,’ stated an industry expert familiar with the region.
The artisanal gold mining sector in Burkina Faso involves approximately 1 million people, with an estimated annual production of 10-30 tonnes, as highlighted in the Crisis Group report. The decision comes amid President Felix’s administration’s efforts to address the challenges faced by the mining sector and enhance its contribution to the country’s economic development.