Burkina Faso’s military-led government has granted an industrial mining license to Russian company Nordgold for the development of a new gold project.
The move comes as the West African nation seeks to capitalize on record-high gold prices to strengthen an economy battered by ongoing insecurity, according to Reuters.
Last year, Burkina Faso reaffirmed its commitment to deepening ties with Russia, emphasizing that the partnership extends beyond military cooperation.
This latest development highlights the country’s growing economic alignment with Moscow as the junta, which seized power in 2022, pivots away from traditional Western allies.
The Niou gold deposit, located in Kourweogo province in Burkina Faso’s Plateau-Central region, covers 52.8 square kilometers within the former exploration license area held by Jilbey Burkina, now owned by Nordgold.
According to the Council of Ministers, the Niou project is expected to produce around 20.22 metric tons of gold over its eight-year lifespan.
Under Burkina Faso’s updated mining regulations, Jilbey Burkina will retain an 85% ownership stake in the project, while the Burkinabe government will hold the remaining 15% without a financial contribution.
The project is anticipated to contribute 51.5 billion CFA francs (approximately $89 million) to Burkina Faso’s state budget over its lifespan, alongside an additional 7.06 billion CFA francs ($12 million) to the country’s mineral wealth fund, according to the Council of Ministers.
Gold prices have surged by more than 25% this year, fueled by geopolitical tensions and trade uncertainties.
Burkina Faso, which has been battling Islamist insurgents since 2015, remains a major gold producer, with over 57 tons produced in 2023, according to the mining-focused NGO Swissaid.
The Niou project will be developed in a major artisanal mining zone, potentially displacing many local miners who rely on the area for their livelihoods.
However, the government stated the project is expected to create 204 direct jobs and support employment at the nearby Bissa Gold SA mine.
