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Junta-led Burkina Faso deepens Russia ties with new gold mining deal
Burkina Faso’s military-led government has granted an industrial mining license to Russian company Nordgold for a new gold project
Junta-led Burkina Faso deepens Russia ties with new gold mining deal
Adekunle AgbetiloyeBurkina Faso’s military-led government has granted an industrial mining license to Russian company Nordgold for a new gold project.
The move comes as the West African nation seeks to capitalize on record-high gold prices to strengthen an economy battered by ongoing insecurity, according to Reuters.
Last year, Burkina Faso reaffirmed its commitment to deepening ties with Russia, emphasizing that the partnership extends beyond military cooperation.
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This latest development shows the country's growing economic alignment with Moscow, as the junta that seized power in 2022 pivots away from traditional Western allies.
Projected gold output and state revenue gains
The Niou gold deposit, located in Kourweogo province in Burkina Faso’s Plateau-Central region, spans 52.8 square kilometres (20.4 square miles) within the exploration license area previously held by Jilbey Burkina, now owned by Nordgold.
According to the Council of Ministers, the Niou project is expected to produce around 20.22 metric tons of gold over its eight-year lifespan.
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Under Burkina Faso’s new mining regulations, Jilbey Burkina will retain an 85% ownership stake in the project, while the Burkinabe government will hold the remaining 15% without any financial contribution.
The project is expected to contribute 51.5 billion CFA francs ($89 million) to Burkina Faso’s state budget over its lifespan, along with an additional 7.06 billion CFA francs to the country’s mineral wealth fund, according to the council of ministers.
Gold prices have surged by more than 25% this year, driven by geopolitical tensions and trade policies under U.S. President Donald Trump.
Burkina Faso, which has been battling Islamist insurgents since 2015, remains a major gold producer. According to the mining-focused NGO Swissaid, the country produced over 57 tons of gold in 2023.
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www.scmp.com