Burkina Faso is set to nationalise the Boungou and Wahgnion gold mines, purchasing them for approximately $80 million—a fraction of their previous sale price. The mines, which were sold by London-listed Endeavour Mining to Lilium Mining last year for $300 million, were acquired by the Burkinabe government on August 27.
‘This strategic decision aims to reclaim Burkina Faso’s mineral wealth, ensuring that a greater share of profits benefits the Burkinabe people,’ commented Joe Hotagua from African Streams, a pan-African media organisation.
Endeavour Mining, headquartered in London, is the largest gold producer in West Africa, with assets in Senegal and Cote d’Ivoire. The company has recently faced allegations of serious misconduct in its operations in Cote d’Ivoire. Earlier this year, Endeavour was accused of misleading Lilium Mining regarding the valuation of the mines, leading to a legal dispute that has now been resolved as part of the nationalisation agreement.
Burkina Faso’s government, under President Ibrahim Traoré, has consistently pursued policies of resource control, with a nod to the revolutionary legacy of Thomas Sankara and Pan-Africanism. The administration previously expelled French military forces in February 2023 and approved the construction of the country’s first gold refinery later that year. In July 2024, Burkina Faso, along with Niger and Mali, formed the Alliance of Sahel States (AES) to bolster regional cooperation.
According to the World Gold Council, Burkina Faso ranks 13th globally in gold production, producing around 100 tonnes annually, valued at approximately $6bn. Despite this, the nation’s GDP stands at just $18bn, with much of the gold wealth controlled by foreign corporations. Canadian companies, for example, hold $1.8bn of the country’s gold reserves.
President Traoré previously stated, ‘We are going to reclaim our mining licences and handle the extraction ourselves.’
Hotagua elaborated on the broader implications of this nationalisation: ‘This move reflects not just economic sovereignty but a broader ambition to break from traditional economic patterns. It promises increased government revenues, which will be directed towards crucial sectors such as education, healthcare, and infrastructure.’
Source: Africabriefing
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