Burkina Faso Grants Industrial Mining Licence to Russian Miner Nordgold
Thank you for reading this post, don't forget to subscribe!Burkina Faso has granted an industrial mining licence to Russian miner Nordgold for a gold project, as the country aims to strengthen its economy amid insecurity and record-high gold prices.
Deepening Economic Ties
The move signifies closer economic ties between Russia and Burkina Faso, as the military-led government shifts towards Moscow, moving away from traditional Western allies.
Niou Gold Deposit
The Niou gold deposit, located in the Kourweogo province of Burkina’s Plateau-Central region, covers 52.8km2 within the exploration licence area held by Jilbey Burkina, now owned by Nordgold. Nordgold already operates the Bissa and Bouly mines.
Expected Gold Yield
The council of ministers stated that the Niou mine is expected to produce about 20.22 tonnes of gold over its eight-year lifetime.
Stakeholder Distribution
Jilbey Burkina will retain an 85% stake in the project, while the Burkinabe government will hold the remaining 15% without financial contribution, in compliance with the country’s new mining regulations.
Economic Contributions
The project is projected to contribute 51.5-billion CFA francs (R1.67bn) to the state’s budget over its lifespan and 7.06-billion CFA francs to the state’s mineral wealth fund, according to the council of ministers.
