Burkina Faso has finalized the transfer of five gold mining assets to its state-owned miner, a decree published Wednesday confirmed.
This move, part of a process initiated last August, aims to enhance state control over the nation’s mineral resources.
Aligning with neighbors Mali and Niger, Burkina Faso revised its mining code last year and established Société de Participation Minière du Burkina (SOPAMIB) to manage strategic mining assets.
The transferred assets include two operating gold mines and three exploration licenses from subsidiaries of London-listed Endeavour Mining and Lilium, such as Wahgnion Gold SA and SEMAFO Boungou SA.
This state intervention occurred after a deal to sell Endeavour’s assets to Lilium stalled.
A decree stated this acquisition supports the state’s policy of “sovereign ownership” to optimize resource exploitation for public benefit.
As Africa’s fourth-largest gold producer, with over 57 tons in 2023, Burkina Faso plans further nationalization efforts, anticipating increased state income, especially given a 27% surge in gold prices this year.
However, these reforms have reportedly caused concern among Western investors, including Canada’s IAMGOLD, Nordgold, and Australia’s West African Resources Ltd.
