Home News Finance Burkina Faso Government Nationalises Two Gold Mines To End Legal Dispute Between Competing Companies
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Burkina Faso Government Nationalises Two Gold Mines To End Legal Dispute Between Competing Companies

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Burkina Faso has taken control of two major gold mines after reaching an agreement with mining companies Endeavour Mining and Lilium Mining. The government will pay approximately $80 million, a significant reduction from the over $300 million that Endeavour initially agreed to sell the mines to Lilium last year.

The nationalisation of the mines—Boungou and Wahgnion—followed a legal dispute between the two companies. Endeavour accused Lilium of failing to make payments, while Lilium claimed that Endeavour concealed financial information about the mines. As part of the deal, both parties have agreed to drop their legal cases.

Burkina Faso will pay Endeavour $60 million in cash and an additional 3 per cent royalty on up to 400,000 ounces of gold from Wahgnion, which analysts estimate is worth $20 million.

The Burkinabe government has not commented on the deal, but Endeavour expressed gratitude for its mediation efforts. Lilium has declined to comment on the matter.

 

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