Burkina Faso withdraws mining licenses: "We know how to mine our own gold"

Burkina Faso stops gold mining by some foreign companies - military chief Ibrahim Traoré demands more self-determination (Image source: Globe Eye News / X)

Gold rush in Burkina Faso: Military chief Ibrahim Traoré poses new challenges to the international gold industry. He announces that he will withdraw mining permits from foreign companies and extract the gold himself. His aim is to strengthen self-determination.

Nicole Dominikowski (translated by Nicole Dominikowski), Published 10/27/2024 🇩🇪 🇫🇷 ...

Business

Burkina Faso is the fourth largest gold producer in Africa and its mining industry has grown steadily in recent years. Now, military leader Ibrahim Traoré has announced that some international companies will no longer be allowed to mine gold in the country.

We will cancel the gold mining permits of mining companies in our country. We know how to mine our gold and I don’t understand why we’re going to let multinationals come and mine it.

- Ibrahim Traoré

Of the country's almost 24 million inhabitants, around 430,000 people are employed in more than 440 mines throughout the country. At the same time, gold is the country's most important export and Traoré wants to try to extract more of his own gold.

Burkina Faso President Ibrahim Traore:

We will cancel the gold mining permits of mining companies in our country.

We know how to mine our own gold. pic.twitter.com/Y6dhpiEtBx
— Globe Eye News (@GlobeEyeNews) October 25, 2024

In electronics, gold is an important component of computer chips, circuit boards, mobile phones and some connectors. It also plays an important role in medical devices and dental technology. The metal is widely used because of its various properties. For example, its relatively high electrical conductivity combined with extreme corrosion resistance and good soldering properties play an important role.

However, it is not yet known which companies will have their licences revoked. Endeavour Mining, which is listed on the London Stock Exchange, is one of the leading gold producers in Burkina Faso. Russia's Nordgold, Canada's Orezone Gold Corporation and Australia's West African Resources (WAF) are also active in the country.

West African Resources said on Tuesday 8 October that it had received assurances that it would be allowed to keep its mining licence, and that Traoré's comments were apparently 'directed to those companies operating in violation of the laws of Burkina Faso'.

Companies operating in compliance with the laws of Burkina Faso, which includes WAF and many other mining companies, will not have their mining permits withdrawn or revoked.

- WAF