Burkina Faso Grants Nordgold Mining License to Boost Gold Production
Burkina Faso’s military-led government has awarded an industrial mining license to Russian miner Nordgold for the development of the Niou gold project, as part of efforts to capitalize on record-high gold prices and strengthen the nation’s economy amid ongoing security challenges.
The move reflects deepening economic ties between Burkina Faso and Russia, as the junta that seized power in 2022 continues to shift away from traditional Western allies toward Moscow.
The Niou gold deposit, located in Kourweogo province within the Plateau-Central region, spans 52.8 square kilometers (20.4 square miles).
It lies within an exploration license previously held by Jilbey Burkina, now a subsidiary of Nordgold, which already operates the Bissa and Bouly mines in the country.
The council of ministers announced late Thursday that the Niou mine is expected to produce approximately 20.22 metric tons of gold over its projected eight-year lifespan.
Under Burkina Faso’s revised mining regulations, Jilbey Burkina will retain an 85% stake in the project, while the government will hold a 15% stake without financial contribution.
The project is expected to contribute 51.5 billion CFA francs ($89 million) to the state budget and 7.06 billion CFA francs to the state’s mineral wealth fund during its operation, according to the government.
Driven by geopolitical uncertainty and international trade tensions, gold prices have surged by over 25% this year, providing a critical opportunity for Burkina Faso, which has battled Islamist insurgencies since 2015 and remains a leading gold producer in Africa.
In 2023, the country produced over 57 tons of gold, according to Swiss NGO Swissaid.
Other major mining companies operating in Burkina Faso include Canada’s IAMGOLD, Endeavour Mining, and Australia’s West African Resources Ltd.
“The cooperation with Nordgold and other industrial mines is important for Burkina Faso’s government as the country faces a budget crunch,” said Ulf Laessing, head of the Sahel program at Germany’s Konrad Adenauer Foundation.
However, concerns have been raised about the project’s impact on local communities, as the Niou site overlaps with a large artisanal mining area that provides vital income for many.
The government estimates the project could create 204 direct jobs and help sustain employment at the nearby Bissa Gold SA mine.
