Burkina Faso approves gold mining lease for Russia’s Nordgold
The move signals deepening economic ties between Russia and Burkina Faso, as the junta that seized power in 2022 continues its pivot away from traditional Western allies toward Moscow
Burkina Faso has granted an industrial mining license to Russian miner Nordgold for a gold project, the military-led West African government announced, aiming to capitalise on record-high gold prices to strengthen an economy hit by insecurity.
The move signals deepening economic ties between Russia and Burkina Faso, as the junta that seized power in 2022 continues its pivot away from traditional Western allies toward Moscow.
The Niou gold deposit, located in the Kourwéogo province of Burkina Faso’s Plateau-Central region, spans 52.8 square kilometers (20.4 square miles) within the exploration license area held by Jilbey Burkina, which is now owned by Nordgold. Nordgold already operates the Bissa and Bouly mines.
The council of ministers said the Niou mine is expected to yield approximately 20.22 metric tons of gold over its eight-year lifespan.
Jilbey Burkina will retain an 85% stake in the project, while the Burkinabe government will hold the remaining 15% without a financial contribution, in accordance with the country’s new mining regulations.
The project is expected to contribute 51.5 billion CFA francs ($89 million) to the state’s budget over its lifespan, and 7.06 billion CFA francs to the state’s mineral wealth fund, according to the council of ministers.
Gold prices have risen by over 25% this year, fueled by geopolitical instability and US President Donald Trump’s trade policies.
Burkina Faso, which has been fighting Islamist militants since 2015, is a major gold producer. According to the non-governmental organization Swissaid, which analyses mining, the country produced over 57 tons of gold in 2023.
Mining companies operating there include Canada’s IAMGOLD (IMG.TO), Endeavour Mining (EDV.L), and Australia’s West African Resources Ltd (WAF.AX).
“The cooperation with Nordgold and other industrial mines is important for Burkina’s government as the country faces a budget crunch,” said Ulf Laessing, head of the Sahel program at Germany’s Konrad Adenauer Foundation.
However, the Niou project will be located in a large artisanal mining area, potentially depriving the people working as artisanal miners of key income, Laessing noted.
The government said the mine could generate 204 jobs, while also helping sustain employment at the nearby Bissa Gold SA mine.
Asaase Broadcasting Company airs on Asaase 99.5 Accra, Asaase 98.5 Kumasi, Asaase 99.7 Tamale, Asaase 100.3 Cape Coast, AsaasePa 107.3 (Accra).
Affiliates: Bawku FM 101.5, Bead FM 99.9 (Bimbilla), Mining City Radio 89.5 (Tarkwa), Nandom FM 101.9, Nyatefe Radio 94.5 (Dzodze), Sissala Radio 96.3 (Tumu), Somuaa FM 89.9 (Gushegu), Stone City 90.7 (Ho) and Wale FM 106.9 (Walewale).
Listen online: asaaseradio.com, Sound Garden and TuneIn.
Follow us:
X: @asaaseradio995, @Asaase985ksi, @Asaase997tamale, @asaase1003, asaasepa1073
Instagram: asaaseradio99.5, asaase985ksi, asaase100.3, asaase99.7tamale, asaasepa107.3
LinkedIn: company/asaaseradio995. TikTok: @asaaseradio99.5
Facebook: asaase99.5, asaase985ksi, Asaase100.3, asaase99.7, AsaasePa107.3.
YouTube: AsaaseRadioXtra.
Join the conversation. Accra: call 020 000 9951/054 888 8995, WhatsApp 020 000 0995. Kumasi: call 059 415 7985 or call/WhatsApp 020 631 5260. Tamale: call/WhatsApp/SMS 053 554 6468. Cape Coast: call/WhatsApp 059 388 2652.
#AsaaseRadio
#AsaasePa
#TheVoiceofOurLand
