Burkina Faso Introduces New Mining Regulations to Boost Revenue and Limit Foreign Exploitation

Confidence UbaniNovember 22, 20242 Mins read428

Burkina Faso’s Council of Ministers has finalised the legal framework of the country’s July 2024 mining code. This move introduces new regulations and reforms to increase revenue from the mining sector. The decision was made on November 20, according to a Thursday statement by the government’s information channel.

Under the new regulations, the government’s stake in mining projects has been increased from 10 per cent to 15 per cent. Another major change is reducing the validity period of mining agreements to five years. Previously, these agreements covered the entire lifespan of a mine. The shorter duration will allow authorities to review and adjust the terms periodically. Additionally, the decrees outline steps for allowing Burkinabe investors to own shares in mining companies.

The reforms mandate companies to carry out community development activities. It also requires a new convention for any exploitation permit renewal. The state can now renegotiate ongoing mining conventions. Other key innovations in the recent decrees include:

The Bureau of Mines and Geology (BUMIGEB) will be included to enhance geological and mining knowledge.
Reduction in the maximum area for exploration permits from 250 km² to 150 km² and an increase in the area for semi-mechanized permits from 100 km² to 150 km².
Limitation to seven exploration permits per legal entity or individual.

The potential impact of these measures is significant. For comparison, neighbouring Mali recently revised its mining code and estimates the changes will add 500 billion FCFA (approximately $793.4 million) to its annual mining revenue.

Burkina Faso’s government hopes the new mining code will bring similar financial benefits. It also seeks to create more opportunities for local investors and encourage greater national participation in the gold industry.

Earlier in October, President Traoré announced plans to reduce reliance on multinational companies for gold mining. He stated that the country has the resources and skills to manage its gold mines independently and may revoke permits from some foreign firms. Traoré noted that the Agency for the Promotion of Community Entrepreneurship has started mining in the South-West region and could receive more permits if its capacity improves. He also stated that the Burkina Mining Participation Company (SOPAMIB) is operational and will oversee several mines. The reforms will further help in boosting the country’s economy.

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Lutz Barz says:

November 27, 2024 at 6:24 am

If it gets rid of the con merchants of the UN all the better. With their fake propaganda overpaid. bloated ignoramuses that only exasperate problems that local could fix but their experts deny access since they claim to know better and leave a mess of they ever turn up in the first place. Preferring to use paid for proxies who are not exactly well schooled either but know how to spend others money, on themselves. Good luck.

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