Burkina Faso has completed the transfer of five gold mining assets to its state-owned miner, marking the conclusion of a process that began in August aimed at increasing national control over its mineral resources.
Following the example of neighboring countries Mali and Niger, Burkina Faso revised its mining code last year to gain a larger stake in its natural wealth. The government established Société de Participation Minière du Burkina (SOPAMIB) to own, manage, and operate strategic mining assets.
The five assets transferred to the state include two operating gold mines and three exploration licenses formerly held by subsidiaries of London-listed Endeavour Mining and Lilium. These include Wahgnion Gold SA, SEMAFO Boungou SA, Ressources Ferké SSARL, Gryphon Minerals Burkina Faso SARL, and Lilium Mining Services Burkina Faso SARL.
A stalled deal between Endeavour and Lilium prompted the state’s intervention. Officials said the acquisition aligns with the government’s policy of sovereign ownership of mining resources to maximize benefits for the population.
As Africa’s fourth-largest gold producer, Burkina Faso extracted over 57 tons of gold in 2023. The government plans to continue its nationalization efforts, aiming to increase state revenue amid a 27% surge in gold prices this year.
However, these reforms have raised concerns among Western investors, including Canada’s IAMGOLD, Nordgold, and Australia’s West African Resources Ltd.
