Burkina Faso has experienced steady GDP growth over the last few years, with the mining industry being a main driver. Could you share the Government’s economic growth strategy and the importance of the mining sector?

Since 2009, the share of the extractive industries within Burkina Faso’s GDP has continued to grow. From around 4.5% in 2009, it rose to 7.9% in 2015, 8.3% in 2016 and 11.4% in 2017. The expected figure for 2018 is above 11.4%. The government’s ambition is to make the mining sector an important lever for sustainable socio-economic development in Burkina Faso by 2026. Achieving this ambition requires effective implementation of reforms in collaboration with other actors in the sector and in accordance with the following guiding principles: state ownership of mineral resources, integration of mines with the rest of the world, partnership, good governance, preservation of the environment, community development and mainstreaming of themes such as gender, environment, human rights and health. To this end, the strategy of our department focuses on two orientations – to create, on the one hand, favorable conditions for research and the rational and sustainable exploitation of mineral resources and, on the other hand, to increase the benefits of exploitation of mineral substances for sustainable development in Burkina Faso.

2018 is expected to be a record year for gold production in Burkina Faso. What have been the major catalysts for the sector’s development and growth?

For gold production, we achieved 46.5 tons in 2017 against 38.53 tons in 2016; an increase of more than 18%. For the first half of 2018, production can be estimated at around 27 tons of raw gold. Several factors have contributed to the growth and development of the sector, the first being the stability of gold prices. Secondly, two gold mines entered into production in 2017 - Houndé in the province of Tuy and Netiana in the province of Nahouri. Thirdly, the National Agency of Supervision of Artisanal Exploitation and Semi Mechanized Miners (ANEEMAS) was created in 2015 to better frame the field. This organization will help to channel artisanal production, estimated at 9.5 tons in a study conducted by the National Institute of Statistics and Demography (INSD), into the official collection circuits. The start of construction of the Wahgnion mine and the start of production of SEMAFO’s Boungou mine have also contributed to the favorable outlook. Finally, the adoption of the 2015 mining code also helps to frame the sector by offering investors more leeway to work in a peaceful environment with all the other actors, particularly the administration, the local populations and the civil society organizations.

A substantial amount of gold is extracted annually by artisanal miners. What efforts has the government made to organize the sector and mitigate challenges?

The mining industry has indeed undergone significant development with an explosion in the number of artisanal mining sites and gold panning sites. To date, more than 600 gold washing sites are listed and more than one million people support themselves through this activity. INSD's 2017 national survey estimates artisanal gold production at 9.5 tons in 2016, at CFAF 232.2 billion.

The artisanal mining of gold has become the second largest occupation of rural populations after agriculture. Despite some advantages, this trend is accompanied by negative environmental, economic and social effects. The Government of Burkina Faso’s creation of ANEEMAS will go some way in addressing these difficulties. ANEEMAS works on the basis of texts such as the law N° 036-2015 / CNT of June 26, 2015 within the mining code and the law N° 028-2017 / AN of May 28, 2017 on the organization of the marketing of valuable substances in Burkina Faso. The Ministry of Mines and Quarries has put the issue of mining craftsmanship at the center of its concerns. On April 26th, 2018, we organized the National Forum on Gold Mining with a theme of management strategies for better contribution to the national economy. The objective of this forum was to set up a framework for dialogue between the Ministry and the actors of the mining industry at a national level.

Although Burkina Faso is mostly known for its gold potential, the country has other resources to offer. Is there now an effort to diversify the sector?

The diversification of exploitable minerals in Burkina Faso is a challenge for the department; the first Board of Directors of the Ministerial Sector (CASEM) of 2018 focused on this subject. An increasing share of government revenue comes from the sector, particularly gold mining, although other minerals exploited include zinc, manganese and quarry substances. A fall in the gold price would be a risk to the macroeconomic stability of our country. In order to address this great challenge, we have set three main lines of activity which are planned over the 2016 to 2025 period. The first is the development of the research of strategic and energy substances; the second is the monitoring and control of mining activities and infrastructure; the third is the promotion of careers in exploitation. The realization of these axes will increase the number of mineral substances exploited.

Research and exploration is ongoing for the development of other mineral resources such as copper and nickel. Quarry substance deposits have also been identified, including more than 500 granite sites, more than 500 clay sites, at least 56 feldspar sites, at least 45 kaolin sites, 22 laterite sites, more than 20 dolomitic limestone sites, one phosphate site and 12 sandstone sites. Interesting sites of precious stones have also been noted.

As the mining sector has developed, what have been the main considerations to establish a balanced Mining Code, and are there plans for further revisions in the foreseeable future?

Since the 1990s, Burkina Faso has had three laws governing the mining sector. After the declaration of the mining policy of 1997, the first mining code was adopted in 2003. With the improvement in gold price from 2000 combined with an attractive mining code, the country has conducted geological and mining research through the national geological service with the support from its technical and financial partners. These efforts have resulted in the installation of 12 gold mines, one zinc mine and several hundred exploration permits (more than 300).

From 2010, the need to re-write the 2003 code stemmed from a period marked by conflicts arising from the increasing desire of local populations to benefit from mining activity. Moreover, the interest of these populations became a condition for the peaceful exploitation of mining resources. In this context, the code was revised on June 26, 2015, by the National Council of Transition. This code created several funds, including the Local Development Fund which contributes to the financing of local development plans. The mitigation of environmental impacts is also better addressed by this code through the creation of closure funds and rehabilitation of mines. This code is a balanced code in that it takes into account the interests of investors, local communities and the state.

There are many indirect economic benefits from the mining sector, such as employment and infrastructure development. What have been some of the main advantages in Burkina Faso besides direct financial return?

Mining brings several benefits to Burkina Faso. There is an increase in local investment, number of direct jobs created, mining revenue and export earnings. In terms of employment, around 2,500 direct jobs were created by the mining industry in 2017, bringing the number to 9,189, against 6,696 in 2016. In terms of artisanal mining, the number of jobs was estimated at over 1.2 million in 2017. As of December 31 2017, there are an estimated 700 people employed in industrial quarries and 8,000 people employed in artisanal quarries.

Direct impact to the state budget amounted to CFAF 226 billion in 2017 against CFAF 190 billion in 2016 – a growth rate of 19%. From January to May 2018, the contribution of mining companies to the state budget amounted to CFAF 81,859,440,333. As for export earnings related to the mining sector, these rose from CFAF 1,023 billion in 2016 to CFAF 1,308 billion in 2017.

Power is a great expense for mining companies and can be a great challenge. What efforts are being made to develop Burkina Faso’s energy sector?

It is true that energy is an important expense for all economic actors in Burkina Faso because we do not produce oil and we are 1,000 km from the supply ports located on the coast. However, efforts are being made to diversify sources of energy supply and increase domestic production. The envisaged energy transition is to increase the share of renewable energy in the energy mix. This is why we encourage mining companies to develop initiatives to create endogenous production units, preferably in renewable energies and especially solar energy – a very available or even unlimited resource in Burkina Faso. One example is the hybrid power station set up at the Essakane mine, which was inaugurated on March 16, 2018. The message is to encourage mines and solar energy developers to invest in renewable energies to ensure the productivity of the extractive industries, while also ensuring electricity supply to the local populations.

What are the priorities for the Government to ensure continued investment and development of Burkina Faso’s mining sector?

The government's priorities to ensure investment and continuous development of Burkina Faso's mining sector are included in the National Plan for Economic and Social Development (PNDES), where the sector is expected to meet the following objectives: increase the share of extractive industries in GDP from 7.9% in 2015 to 10.2% in 2020; increase the proportion of local purchases in the food consumption of mining industries from less than 14% in 2015 to 25% in 2020; increase the average amount of local investments made by the mining industry from CFAF 2 billion in 2015 to CFAF 5 billion in 2020; increase the number of direct and indirect jobs created by the mining sector from less than 10,000 in 2015 to 20,000 in 2020.

In addition to its objectives, the Head of State has made commitments to the members of the government and mines to set up a mechanism for monitoring mining operations, to implement a gold mining economic recovery strategy, conduct a production assessment for importing and operating equipment, establish a national geological and mining data bank, and promote industrial quarrying to increase the supply of construction materials.