Burkina Faso: strategies to boost flagging production

Burkina Faso, once a major player in gold production in West Africa, is going through a period of uncertainty. By 2021, the country had produced around 67 tonnes of gold, but since then production has fallen steadily, mainly as a result of growing insecurity. In 2024, the country recorded its third consecutive year of falling industrial gold production.

Preliminary figures for 2024 show that gold production reached 47.7 tonnes at the end of November, compared with 50.9 tonnes for the same period in 2023. The absence of definitive data leaves little hope of a significant improvement. The gold sector, which is an essential part of Burkina Faso's economy, is struggling to regain its dynamism despite the emergence of new projects.

The drop in production is largely attributed to persistent security problems. As far back as 2022, the former Minister of Mines, Simon-Pierre Boussim, explained a 14% drop in production by "general insecurity aggravated by terrorism". A December 2024 report by the Extractive Industries Transparency Initiative (EITI) confirms that attacks by armed groups forced production to cease at five gold mines in 2022.

In addition, the strategy of some mining companies reflects the difficulties of the sector. In 2023, Endeavour Mining sold its Boungou and Wahgnion mines, describing them as "higher cost, higher risk" assets. The conflict between Endeavour and Lilium Mining further complicates the situation, slowing down operations at these mines, which had produced nearly 7 tonnes of gold in 2022.

In 2023, the Burkina Faso government has agreed with the companies concerned to integrate these mines into the State portfolio, without providing any details on their operational future.

Despite the departure of some companies, others continue to invest in Burkina Faso. Orezone Gold, a Canadian company, launched its Bomboré mine at the end of 2022 and is currently in the expansion phase. Annual production could exceed 170,000 ounces by the end of 2025, compared with 118,746 ounces in 2024. A second phase of expansion could further increase production to between 225,000 and 250,000 ounces annually.

Australia's West African Resources plans to bring the Kiaka mine on stream in the third quarter of 2025, with an expected capacity of 234,000 ounces a year for at least twenty years.

Gold production plays a crucial role in Burkina Faso's economy. In 2022, the extractive sector accounted for 73.3% of the country's exports, with gold making up 96%. The gold industry generated 20.9% of government revenue and contributed 14.5% to national GDP.

However, the continuing fall in production is threatening these economic contributions. While the new projects offer a glimmer of hope, it remains to be seen whether they will be enough to reverse the current trend and stabilise a sector in crisis.