Burkina Faso’s military-led government has granted a mining lease to Russian miner Nordgold for the Niou gold project.
This move aims to leverage high gold prices to bolster the nation’s economy, which has been impacted by insecurity.
The decision signals strengthening economic ties between Burkina Faso and Russia, as the current junta shifts away from traditional Western allies.
The Niou gold deposit is expected to produce approximately 20.22 metric tons of gold over its eight-year lifespan.
Nordgold’s subsidiary, Jilbey Burkina, will hold an 85% stake, while the Burkinabe government will retain 15% without financial contribution, following new mining regulations.
The project is projected to contribute significantly to the state’s budget and mineral wealth fund.
The rise in gold prices, partly driven by global instability and U.S. trade policies, makes this development economically significant for Burkina Faso, a major gold producer facing a budget crunch due to ongoing militant activity.
While the government highlights the potential for job creation and sustained employment, concerns have been raised about the project’s location in an artisanal mining area and its potential impact on local miners’ livelihoods.
