Burkina Faso and its growing Mining sector
- October 10, 2016
Burkina Faso can now be considered at the highest level by mining companies because it is the second mining country in Africa, after Morocco and 29th in the world. Indeed, in Burkina Faso, the growing mining sector, has recorded significant results over the past year, despite the decline in the world price of gold, industrial production of mines crossed 36,283 tonnes of gold metal in 2014 to 36,350 tonnes in 2015.
First generator of revenue of the country, with a contribution of 168, 410 billion FCFA in 2015, or 12% of tax revenues, the mining sector in Burkina Faso is dominated by exploitation of gold whichrepresents 60% of the country’s mining. Since 2009, Gold is the first export commodity of Burkina Faso. Its expansion arouses the interest of several factors (public authorities, researchers, local people and foreign investors). There are various forms of exploitation of ore from gold planning to exploitation on small and large scale. Despite the increased investment and the use of up-to-date technology, worldwide exploration statistics show that the discoveries of more than one (01) million ounces (atleast 32 tones) of gold per year are be BURKINA FASO AND ITS GROWING MINING SECTOR coming increasingly rare worldwide. Yet, the recent development in the exploration of Burkina underground activities showed that at least one (01) deposit in this category is found in Pays des Hommes intègres every year since 2005. This performance led to a renewed interest in Burkina Faso, evidenced by the proliferation of international mining companies and service providers in mining.
The authorities of Burkina Faso have made mining a major focus of the country’s development policy; evidenced by the large number of permits granted to mining companies. Recently, the Council of Ministers, in April 2016, have agreed to grant KIAKA SA, the permit of industrial exploitation of the gold mine located in the town of Gogo, the Zoundweogo Province, South Central Region. The mineral reserves in this locality are estimated to 85,845 tonnes of crude gold and cover an area of 54,02 km² for an operating life of 14 years. The exploitation of the deposit will create 1,000 temporary jobs, 540 permanent jobs and generate revenue for the benefit of the State budget.
Over a week before, on 11 April 2016, the Chief Executive of the company Endeavour Mining has been received in audience by the President of Burkina Faso. The main Head of the Endeavour Mining has stated that his company is planning to build a gold mine in Houndéin the Western part of the country. This will be the biggest mine in Burkina Faso with an investment of 200 billion FCFA and create 4,000 to 5,000 direct and indirect jobs, reported by Endeavour Mining. The first in got of gold mine in Houndé is expected by end of 2017. Several other mining companies are already present in Burkina Faso. Some of them are, SOMITA S. A (Taparko Mine), SEMAFO, IAMGOLD, Bissa Gold, Youga Gold, True Gold Inc, Pan African Tambao, Burkina Manganese S.A, Blackthorn Resources & Glencore International, etc. Most of these mining companies are Canadian.In addition to gold, Burkina Faso has large manganese reserves in Tambao in the Sahel region. Tambao deposit consists of manganese oxide ore estimated at 20 million tons. The manganese content is from 52% to 53%. The mine operating permit was grante din 2014 to Pan African Tambao, the Burkina be subsidiary of Pan African Minerals group. The granting of mining rights on the Tambao manganese deposit, is part of a big project of infrastructure development for the Northern part of the country. The Government has opted to do the Tambao mining project, an integrated project comprising three essential components:
Rehabilitation of the railway line Ouagadougou-Kaya and the construction of the railway line Kaya-Dori-Gorom-Gorom-Tambao
Asphalting of the road Dori-Gorom-Gorom-Tambao
The construction and operation of the manganese mine Tambao.
The integrated project Tambao experienced start-up difficulties that are in the process of being resolved.
In addition to the manganese and gold, Burkina Faso has abundance of other minerals including zinc and phosphate.
report from the Fraser Institute (Canada)
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