Tuesday, June 4, 2024
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Gold Production Declines in Burkina Faso Amid Escalating Terrorist Attacks

Burkina Faso witnessed a drop in gold production last year, with deteriorating security conditions prompting the closure of several mines in the West African nation.

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The Sahel region, grappling with an Islamist insurgency, experienced significant turmoil, impacting Burkina Faso, which endured two military coups in 2022. According to the Sydney-based Institute for Economics & Peace, the country, under the rule of Captain Ibrahim Traore for the past 18 months, accounted for nearly a quarter of global fatalities resulting from terrorist attacks last year.

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In 2022, six mining companies ceased operations, with another one following suit in the subsequent year. As a result, gold output experienced a 1.5% decline, totaling 57.3 tons in 2023, as reported by the Ministry of Mines, Quarries, and Energy.

“2023 was a very challenging year in terms of security, leading to varied economic and social repercussions,” stated Brahim Kéré, director of forecasting and macroeconomic analysis at the ministry. “In the gold sector, terrorist attacks led to the closure of certain mining sites and hindered the supply chain for fuel and other essential materials.”

To address economic concerns, Burkina Faso revised its mining code last year, aiming to enhance royalty revenues during prosperous periods. Additionally, the country suspended mineral exports by small-scale miners the previous month.

Despite the prevailing challenges, several companies continue their operations in Burkina Faso, including West African Resources Ltd., Endeavour Mining Plc, and Iamgold Corp.

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