Nordgold, a prominent Russian gold mining company, is signaling a strategic shift toward Africa, expressing strong interest in substantial investments in Sierra Leone and Guinea-Bissau. This comes as the company consolidates its presence in the region following the recent acquisition of a significant gold project in Burkina Faso, underscoring growing economic ties between Russia and West Africa.
At the #SPIEF2025 event, Nordgold CEO Georgi Smirnov described Africa as an “extremely promising region” with many untapped opportunities. While no formal agreements are yet in place, Smirnov emphasized the company’s readiness to invest in both Sierra Leone and Guinea-Bissau, highlighting the abundance of potential projects in these countries.
Nordgold currently operates across Burkina Faso, Guinea, Russia, and Kazakhstan, managing a diverse portfolio that includes exploration licenses, four active mines, and two projects in development. This reflects the company’s aggressive expansion strategy within the global gold sector.
Burkina Faso’s Niou Gold Project
In April 2025, Burkina Faso’s military-led government granted Nordgold an industrial mining license for the Niou gold project. This move aims to leverage record-high gold prices to strengthen an economy challenged by security issues, signaling a political pivot toward Moscow and away from traditional Western partners.
The Niou deposit, located in Kourweogo province, covers 52.8 square kilometers within an exploration area formerly held by Jilbey Burkina, now a Nordgold subsidiary. Nordgold also operates the Bissa and Bouly mines in Burkina Faso.
The Niou mine is expected to produce approximately 20.22 metric tonnes of gold over an eight-year period. Under updated mining regulations, Jilbey Burkina will hold an 85% stake, while the Burkina Faso government retains 15% without financial contribution.
Financially, the project is projected to generate £51.5 billion CFA francs (£89 million) for the state budget and contribute £7.06 billion CFA francs to the national mineral wealth fund over its lifespan.
Gold Market Dynamics and Local Impact
Global gold prices have surged more than 25% this year, driven by geopolitical instability and US trade policies. Burkina Faso, a key gold producer, reported over 57 tonnes in 2023, according to NGO Swissaid. Other major mining players in the country include Canada’s IAMGOLD and Endeavour Mining, as well as Australia’s West African Resources Ltd.
Ulf Laessing, head of the Sahel programme at Germany’s Konrad Adenauer Foundation, praised the collaboration as crucial for Burkina Faso’s fiscally strained government. However, he raised concerns that the Niou project’s location near a large artisanal mining area could displace local miners and threaten their livelihoods.
As Nordgold continues to deepen its African footprint, its investments signal both economic opportunity and the challenges of balancing industrial-scale mining with community impact in the region.
