Burkina Faso plans to expand state control over its industrial mining sector as part of a push to capture more revenue from its vast gold resources, Prime Minister Jean Emmanuel Ouédraogo said on national television on Monday, according to Reuters.
The announcement signals the next phase of a sweeping resource reform agenda launched by the military-led government, which has already seized two industrial gold mines formerly owned by London-listed Endeavour Mining through a new state-run firm, Société de Participation Minière du Burkina (SOPAMIB).
‘SOPAMIB has already recovered two industrial mines, notably Boungou and Wahgnion, and this will continue,’ Ouédraogo said in his televised remarks.
Nationalisation drive amid rising gold prices
Burkina Faso, like neighbours Mali and Niger, has moved to reclaim greater sovereignty over its natural resources since a wave of political upheaval swept across the Sahel. The country revised its mining code in 2024, establishing SOPAMIB to spearhead direct state involvement in mine ownership and operations.
The prime minister’s comments come at a time when gold prices have surged by over 25 percent this year, driven by global uncertainty and what Reuters described as ‘erratic trade policies’ under current US President Donald Trump.
The government says its reforms aim to reduce reliance on foreign operators, raise revenues, and reboot a fragile economy battered by persistent insecurity. Since 2015, Burkina Faso has been embroiled in a conflict with Islamist militant groups that has claimed thousands of lives and displaced millions.
Despite these challenges, the country produced over 57 tonnes of gold in 2023, making the sector one of the cornerstones of the economy. Major operators include Canada’s IAMGOLD and Australia’s West African Resources Ltd.
Shift from Western partners to Russian ties
The reforms have unsettled some investors, but the government insists they are necessary to ensure that mining benefits the population more equitably. Ouédraogo said existing initiatives were already bearing fruit, citing the state-run National Precious Substances Company’s collection of over eight tonnes of gold in 2024, and more than 11 tonnes in the first quarter alone—mostly sourced from the artisanal sector.
In a further sign of its pivot away from traditional Western allies, Burkina Faso last week awarded an industrial mining licence to Russian firm Nordgold for a gold project in Kourweogo province.
Relations with France and other Western countries have deteriorated since two military coups in 2022 brought the current junta to power. In contrast, ties with Russia have grown stronger, particularly in the areas of security cooperation and mineral development.
Gold reform seen as ‘mining revolution’
The revised mining code prioritises the use of national expertise and local suppliers, which officials describe as a ‘revolution’ in how Burkina Faso manages its mineral wealth.
The country is also taking steps to establish its first-ever national gold reserve, according to the prime minister. ‘We should see more of the benefits of mining in Burkina Faso, not just the consequences that the population suffers,’ Ouédraogo said.
The government is expected to continue using SOPAMIB to acquire further stakes in key mining operations as it redefines its approach to resource governance.
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