Burkina Faso moves towards mining nationalism

The government of Burkina Faso is tightening its grip on the gold industry, a strategic sector for the national economy, against a backdrop of soaring world gold prices and growing economic pressures. According to Prime Minister Jean Emmanuel Ouédraogo, the move, which is marked by a nationalism of resources, is aimed at maximising the benefits derived from the country's mineral wealth.

At the heart of this strategy is the newly-created state-owned Société de Participation Minière du Burkina (SOPAMIB), which has taken control of the Boungou and Wahgnion industrial gold mines, previously operated by London-listed Endeavour Mining. "These recoveries are just the beginning", warned Mr Ouédraogo, suggesting that other nationalisations could follow.

This initiative is based on the 2023 revision of the mining code, which strengthens local expertise, favours Burkinabè suppliers and gives the government greater powers in the sector. Described as a "revolution" by the authorities, this reform aims to ensure that mining wealth benefits the population more.

Burkina Faso, one of Africa's leading gold producers, extracted more than 57 tonnes of gold in 2023, despite a persistent conflict with Islamist insurgent groups. With an economy weakened by years of instability, the government is counting on increased participation in mining revenues to boost growth. This ambition is all the more pressing given that the price of gold jumped by more than 25% in 2025, boosted by geopolitical tensions and global trade instability.

However, these reforms are causing concern among foreign investors. Companies such as Canada's IAMGOLD and Australia's West African Resources, which are still active in the country, fear that legal uncertainty and the growing role of the state will discourage future investment.

At the same time, Burkina Faso is strengthening its ties with Russia, after severing relations with several Western countries following the military coups of 2022. A new gold mining licence has been granted to Russian company Nordgold for a project in the province of Kourweogo, which is expected to generate around 52 billion CFA francs ($89 million) for the national budget, with funds allocated to the mineral wealth reserve fund.

The government is also working to formalise artisanal mining, a key sector. In the first quarter of 2025, more than 11 tonnes of gold, mainly from artisanal sources, were collected, marking a significant increase on 2024. A national gold reserve is being set up to consolidate these efforts.

"We must ensure that the benefits of mining are felt by the people of Burkina Faso and not just the consequences," insisted Prime Minister Ouédraogo. This vision is part of a regional dynamic, with countries such as Mali and Niger adopting similar approaches, favouring sovereignty and national interests over foreign control.

Burkina Faso's approach reflects a wider recalibration in West Africa, where nations are seeking to redefine the management of their natural resources. It remains to be seen whether this strategy will succeed in reconciling the imperatives of economic development with the need to maintain the confidence of international investors.