Junta leader Ibrahim Traoré announced on Saturday that Burkina Faso is set to withdraw mining permits from some foreign companies operating in the country.
The decision was made to increase the amount of domestically produced gold.
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Traore made the announcement in a radio address on the two-year anniversary of taking control of the country following a coup.
He said: “We know how to mine our gold and I don’t understand why we are going to let multinationals come and mine it… in fact, we are going to withdraw mining permits.”
Gold is the main metal exported from Burkina Faso. Gold production across West African nations, led by Burkina Faso, Ghana, Mali and the Republic of Guinea, according to Mining Technology’s parent company GlobalData, is expected to reach 11.83 million ounces (moz) in 2024, a 2.6% increase from 2023.
However, production in Mali and Burkina Faso is expected to decline by 5.5% collectively in 2024 due to factors such as lower ore grades, planned reduction and temporary suspension of operating activities.
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By GlobalDataOn Monday (7 October), shares of some of the gold mining companies operating in the West African country, including Endeavour Mining (based in the UK), West African Resources (Australia), Nargold (Russia) and Orezone Gold Corporation (Canada), all dropped significantly.
Canada-based Fortuna Mining, on the same day, announced that the government in Burkina Faso does not have plans to withdraw its existing mining licences.
Endeavour Mining, whose price dropped 3%, said that the government in Burkina Faso remained supportive of the company and it was not aware of any plans to revoke its licences.
Frustrations over the long-term security of gold helped the junta gain power in 2022. Subsequently, it severed ties with Western nations in favour of an increased relationship with Russia, signing a memorandum of understanding in 2023 for a nuclear power plant with state-owned Rosatom.
