Among the innovations contained in the new mining code, the country wants to build up a gold reserve.
Ouagadougou will ask mining companies to contribute to the “constitution of the national gold reserve”, according to the minutes of the Council of Ministers meeting held on Wednesday 20 March 2024.
The new mining code also takes into account the marketing of gold and other substances.
At the end of November 2023, the captain launched work on the construction of a national gold refinery in Ouagadougou, with a capacity of 400 kilograms of gold per day, or 150 tonnes of gold per year.
In January 2024, he launched the activities of a tailings treatment plant, after which the government suspended the export of artisanal gold.
The new mining code requires mining companies to open up their share capital to Burkina Faso investors, and strengthen the power of officials to monitor and control mining activities.
In addition, the state’s legal shareholding in the capital of mining companies for the granting of a licence to operate a large or small mine has been increased from 10 percent to 15 percent.
Industrial gold production at 31 December 2022 was 57.674 tonnes, compared with 66.858 tonnes in 2021, while declared artisanal gold production was 266 kg in 2021, compared with 457 kg in 2022.
Direct revenue to the state budget will rise from 430.916 billion CFA francs ($718 million) in 2021 to 540.984 billion CFA francs ($902 million) in 2022, an increase of 110.068 billion CFA francs ($183
million) in absolute terms, according to figures provided by the ministry in charge of mines.
Gold export revenues are estimated to have risen to 2099.1 billion FCFA ($3.5 billion) in 2022, representing 73.86 percent of export revenues, consolidating its position as the country’s leading export
product since 2009.
DS/ac/fss/as/APA