Burkina Faso Grants Nordgold Mining License, Strengthens Ties with Russia

Burkina Faso has granted an industrial mining license to Russian company Nordgold for the development of the Niou gold deposit, reflecting the country's increasing economic alignment with Russia following the 2022 military coup. The project, located in Kourweogo province and spanning 52.8 square kilometers, is expected to yield around 20.22 metric tons of gold over eight years. Under new mining regulations, Nordgold's subsidiary will hold an 85% stake, while the Burkinabe government retains 15% without financial input. The deal is projected to contribute over $89 million to the state budget and 7.06 billion CFA francs to a mineral wealth fund. While the agreement is seen as vital for Burkina Faso's economy amid a budget crunch and ongoing insecurity, experts caution that it could displace local artisanal miners who depend on the land. The move underscores Burkina Faso's broader pivot away from Western partners in favor of deepening ties with Moscow, as global gold prices surge due to geopolitical instability.