Burkina Faso has completed the transfer of five gold mining assets to its state-owned mining entity, marking a significant step in the government’s campaign to reclaim greater control over the nation’s mineral wealth. The formal handover was confirmed in a decree issued late Wednesday, finalizing a nationalization process that began in August 2023.
This transfer is part of a broader strategy adopted by the Burkinabe government to assert sovereignty over strategic resources. The country revised its mining code last year, aligning with similar moves by its Sahelian neighbors, Mali and Niger. To spearhead these efforts, authorities established the Société de Participation Minière du Burkina (SOPAMIB), a state-run enterprise tasked with owning, managing, and operating assets deemed vital to the nation’s economic interests.
The assets involved in the transfer comprise two operating gold mines and three exploration licenses. These were previously held by subsidiaries of London-listed Endeavour Mining and Lilium. The entities affected include Wahgnion Gold SA, SEMAFO Boungou SA, Ressources Ferké SARL, Gryphon Minerals Burkina Faso SARL, and Lilium Mining Services Burkina Faso SARL. A proposed deal to transfer Endeavour’s holdings to Lilium collapsed, prompting direct state intervention.
“This acquisition is in line with the state’s policy of sovereign ownership of mining resources to optimise exploitation for the benefit of the population,” the government stated in the official decree.
Burkina Faso, currently Africa’s fourth-largest gold producer, reported a total output exceeding 57 tons in 2023. The government believes the nationalisation drive will increase revenue for the country, especially as gold prices have surged by 27% this year. Officials argue that keeping a greater share of profits within national borders will provide more sustainable funding for public services and development projects.
However, the government’s actions have caused unease among international investors. Companies with existing or potential stakes in Burkina Faso’s mining sector—including Canada’s IAMGOLD, Russia-linked Nordgold, and Australia’s West African Resources Ltd—have expressed growing concern over the future investment climate.
While the authorities have pledged to maintain stability and ensure transparency, industry observers caution that increasing state intervention may deter foreign investment and impact long-term production capacity.
Still, Burkina Faso remains firm in its approach, emphasizing that the move is part of a larger effort to ensure that the country’s mineral wealth benefits its citizens more directly, especially during a period of rising global demand and price spikes for precious metals.