Burkina Faso Completes Nationalisation of Five Major Gold Mines

Burkina Faso has completed the nationalization of five gold mining assets, transferring ownership to its state-owned company Société de Participation Minière du Burkina (SOPAMIB), marking a significant move to increase state control over its mineral resources. This includes two operating mines and three exploration licenses previously held by foreign companies such as Endeavour Mining and Lilium, after a stalled sale prompted government intervention. In line with its August 2024 Mining Code reforms, Burkina Faso has also increased its free-carried equity stake in gold projects from 10% to 15%, aiming to boost national revenue amid rising gold prices. The country, Africa's fourth-largest gold producer, sees gold as a critical export contributing over 70% of its earnings, and the government emphasizes sovereign ownership to optimize benefits for its population. However, these moves have raised concerns among Western investors, who worry about the impact of resource nationalism on foreign investment and legal certainty in the region. Burkina Faso's actions reflect a broader regional trend seen in Mali and Niger, as African nations seek greater control over their natural resources.