For a long time, Burkina Faso has been among the top gold-producing countries in Africa, with gold as its leading export product. Unfortunately, as President Ibrahim Traore started, “Burkina Faso has had no control over the gold until now. When Ibrahim Traore took over the reins of leadership in 2022, he made it known that aside from combating the insecurity crisis in the country, his other focus would be taking charge of the country’s resources to ensure that they benefit the people. This is why he has taken a particular interest in Burkina Faso’s gold mining Industry which has been left in the hands of foreign companies and jihadists. So, what system has Ibrahim Traore put in place to control the mining industry and what actions has he taken regarding gold production since he came to power? Let’s find out in this video.
On Wednesday 21st of February 2024, Burkina Faso’s newly appointed mines minister, Yacouba Zabre, announced that the country has suspended exports of gold and other precious metals by artisanal mining in a bid to “better organize” the mining sector. This suspension is with immediate effect and it 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 Mines Minister didn’t say how long the suspension would last but added that groups who have material to export are invited to reach out to the National Society for Precious Commodities (SONAP) for compensation. This decision by the military government of Burkina Faso is in line with similar decisions made by other African countries such as Zimbabwe and Namibia which placed a ban on the export of unprocessed minerals including lithium.
According to some experts, it’s not yet clear how this decision will affect the economy of Burkina Faso. However, in our opinion, this is a very good decision and is an important step that is necessary to take charge of the gold mining industry. So, why is this decision important? Gold is Burkina Faso’s main export, accounting for 37% of total exports as of 2020, and mining is a leading source of jobs. Now, of all the gold industrially produced in Burkina Faso, artisanal constitutes half of it with about 1 million people involved in artisanal gold production. However, this has made it easy for terrorists and jihadists to take control of several gold mines which they use in fuelling terrorism in Burkina Faso. As Captain Traore stated in 2022, “A lot of gold leaves Burkina fraudulently, and this moreover helps to fuel terrorism”. The ongoing terrorism has in turn led to the the closure of four industrial mines and the abandonment of nearly 700 gold-panning sites in 2022, which has also led to a reduction in the total output of gold produced in recent times. Therefore the suspension of gold export is aimed first, at cutting a major source of funds for terrorists in the country and two, addressing the challenges faced by the mining sector and enhancing its contribution to the country’s economic development.
This is a brilliant move made by Ibrahim Traore to control the Burkina Faso mining sector, but it’s not the only one he has made since he took over power in the country. In January 2024, Burkina Faso opened its first mining waste processing facility for mining residues. This marks a significant development in the management of mining by-products and aims to create a value chain that generates opportunities around its extractive industry. The inauguration of the facility in the Kossodo industrial zone just east of the capital Ouagadougou was attended by President Traore who proudly stated that the machines were entirely constructed in Burkina Faso, emphasizing the nation’s ingenuity. In his own words, “I can confirm without fear of contradiction that Burkina Faso is the second country in Africa to develop this technology. He commended what he called the “Burkinabe revolution” behind this technological achievement during the inauguration of the mining waste processing facility.
President Traore further added that the opening of the factory was all part of his regime’s bid to have the country manage its own resources. He then invited other African states to bring their own mining waste to Burkina Faso “because we have the technology to process.” According to Joachim Marie Emmanuel Tapsoba, chief executive officer of Golden Hand, the company that operates the plant to extract metals from the residues, “Local experts were the ones who developed the plant to process residue from the country’s gold mines. He also stated that the establishment of the plant is designed to allow Burkina Faso to process onsite and have full control of the waste. According to reliable sources, the waste plant will be forty percent owned by the state and sixty percent owned by the company Golden Hand South Africa. Facing the media, and speaking regarding the waste plant, the Burkinabe Minister of Mines expressed his satisfaction, stating that “Our country has clearly decided to assert itself and fully assume its sovereignty in all areas, with a particular emphasis on the mining sector. It has therefore become an urgent necessity to find endogenous ways and means to recover, as much as possible, the metals contained in mining residues.
So, what’s the implication of this mining waste plant? How will it affect the Burkina Faso Industry? With the establishment of this new waste processing plant, gold production will experience a new boost because residues from gold mining operations can contain significant traces of gold. This means that gold production will increase significantly. Similar to this initiative, President Traore launched the construction of Burkina Faso’s gold refinery in November 2023. Ismael Siby, CEO of the refinery’s co-managing company Marena Gold, noted that the refinery is designed with a daily production capacity of around 400 kilograms of gold, underscoring the nation’s commitment to optimizing its primary mineral resource. According to Sibyl, the first 22-carat gold bars would leave the refinery in 11 months and have the capacity to create 100 direct jobs and 5,000 indirect jobs. During the launch of the refinery, Captain Traore stated that “There’s no longer any question of us taking our gold abroad for refining. We’ll refine it on-site because we know the real content of the raw gold that comes out. That’s very important,”
The refinery which is developed in partnership with Marena Gold, a local company, will house a jewelry store and the future headquarters of the Société Nationale des Substances Précieuses, which oversees the project on behalf of the State. Following the launch, the military government replaced Simon-Pierre Boussim, who had been the mines minister with Yacouba Zabre in December. This move came at a time when the country sought to improve its gold production following a decline of 14% in 2022. In addition to all these moves, the government introduced in October 2023, a new gold sales royalty for gold prices above one thousand five hundred dollars per ounce, which marks a direct change from the previous flat 5 percent royalty it applied between USD$1,300 and USD$1,500 per ounce.
According to Bloomberg, the government took action to align the country’s royalty system with that of neighboring gold mining jurisdictions when it signed a decree on October 27 to implement the new levy on gold production. Currently, a 6 percent levy will now apply when the price of gold trades between USD$1,500 per ounce and USD$1,700 per ounce, and this rate will increase to 6.5 percent and 7 percent, respectively, when the gold price trades between USD$1,700 ounce and $2,000 ounce. If the gold price surpasses USD$2,000/oz, the percentage will jump to 7 percent. From all these, we can note that Captain Ibrahim Traore is truly dedicated to transforming and nationalizing Burkina Faso’s mining sector. But this shouldn’t be surprising because, from the time Captain Traore was launched into the spotlight, he revealed how passionate he was about the need for African countries to take charge of their abundant resources.
If you recall clearly during the Russia- Africa summit, where Captain Traore gave a speech that distinguished him from other African leaders, the world’s youngest President explained how he has always wondered why Africa was poor despite its abundant resources and he came to the conclusion that it was because of Western countries and their companies working together with weak puppet African leaders that have made the African continent as it is. It was from this point that Captain Traore pledged to do things differently and from what we can see he has kept to that pledge. His bold steps in fighting the Western hold on Burkina Faso’s resources and ensuring better opportunities for the citizens of Burkina Faso will undoubtedly push the country to greater heights. Indeed, Captain Ibrahim Traore has transformed the Burkinabe gold mining Industry, and a few years from now, the citizens will begin to enjoy the benefits of all the plans that he has made.
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