What have been the main developments in the mining sector in Burkina Faso over the last year?

The biggest challenge remains security. For the past five years or so, mining activity has been interrupted multiple times due to security issues, and it is worrying to see that four mines have indefinitely suspended operations since the beginning of this year. Norgold shut down its Taparko mine in the country, while the Turkish mine of Youga (operated by Avesoro Resources) and locally-owned Karma mine both ceased activities. Meanwhile, the flooding incident at the Perkoa zinc mine forced Trevali to close down the site. This unfortunate situation has put around 2,500 jobs at stake and is depriving the country of a potential US$35.7 million in tax revenue. Compared to H1 2021, gold output in the first half of 2022 was roughly 8% lower, with a drop of around 4 tons of gold. Besides the security threat on the ground, the country has faced two military coups and sanctions from ECOWAS, which are impeding the country’s development. At the same time, two new mines currently under construction will enter production in the next two years, both Orezone and West African Resources advancing phenomenally with their flagships in the country and proving that Burkina Faso is ground for terrific discoveries that can be turned into mines, on time and on budget.

Could you comment on the Chamber’s reaction to the recent coup launched by the military ruler?

As the umbrella organization of the mining companies in Burkina Faso, we expect and encourage the new authorities to consider the alarming situation of the mining sector and provide effective fast speed solutions to the security issues affecting the country.

What are the underlying factors that fuel the ongoing insurgency?

The political instability and legacy political frictions are not helping to bring stability because the efforts are not concentrated and unilateral, even though the different governments in place have put security at the top of their agendas. There are deeply rooted tensions along community and ethnic lines, as well as rival factions that compete for power, terrain, and ideology. There is no overnight solution – it will require time and a thought-out strategy to bring in sustainable peace solutions. The origins of the conflict are not inherent to Burkina Faso, as violence spilled out from Mali and continues to ferment across the Northern Sahel. We need a regional approach to change the course of events. Also, we cannot forget that Burkina Faso is ranked 184 out of 191 poorest countries in the world. Economic fragility and poverty are ruthlessly exploited by insurgents.

It's been 5 years since you established the Community Development Fund. How has this evolved?

Between 2019 and 2021, over US$200 million has been paid into the fund by mining companies. The issue remains the disbursement of this cash at the community level by the different municipalities tasked with the allocations for specific projects. Less than 20% of the cash generated has been allocated so far. This speaks to the problem of managing large amounts of money and translating these into meaningful projects. The Minister of Mines has undertaken a restructuring of the process to make sure that the money is handed out transparently, merit-based, and with a positive socio-economic impact.

Could you summarize the main priorities at the Chamber of Mines for this year?

Our main priority today is to strengthen the collaboration between mining companies and the Chamber and reverse this trend whereby majors are pulling the brake on their operations in the country due to security troubles. The second priority is to continue to facilitate the contribution of mining to the socio-economic development of Burkina Faso. On that aspect, we are working with the Minister of Mines to strengthen local content regulations so that we see a broader know-how transfer, the growth of local talent, and job creation; the current laws provide recommendations for miners to choose local service providers, and the regulation will eventually evolve into a requirement.

Do you have a final message?

At the Chamber, we are committed to doing our best not only for the mining industry but for the whole country, to make sure it benefits from its rich resources and it overcomes existing challenges. Burkina Faso is a country of immense potential, and I want to thank all workers operating in the mines for their dedication and hard work against all hardships. They make mining possible in the country.