Burkina Faso Is Cracking Down On Gold Exports

Burkina Faso’s military leadership has announced an immediate halt on the issuance of export permits for gold and other precious commodities sourced from artisanal and semi-mechanized operations. 

The decision, detailed in a February 20 statement, aims to restructure and enhance the regulation of the sector. The government’s move seeks to address the organization and marketing of these commodities, although it remains unspecified how long this suspension will last.

Affected mining groups with materials ready for export are being directed to the National Society for Precious Commodities (SONAP) to discuss compensation. Gold, being the nation’s principal export and accounting for 37% of its total exports in 2020, plays a crucial role in Burkina Faso’s economy, not only as a major revenue stream but also as a significant employment source.

The country’s gold mining industry has faced setbacks due to an ongoing Islamist insurgency and political turmoil, disrupting exploration activities and reducing output. This has led to the closure of several mines and reduced production in others. The insecurity has also contributed to political unrest, resulting in two military coups in 2022.

Artisanal mining represents a substantial portion of the gold produced in the Sahel region, including Burkina Faso. A 2019 Crisis Group report indicates that artisanal methods produce nearly half of the gold in the area, engaging an estimated 1 million people and yielding between 10 to 30 tonnes of gold annually in the country.

Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply