Gold production experienced a downturn in Burkina Faso in the previous year due to escalating security challenges, leading to the closure of several mines. The nation, situated in West Africa, grappled with the impacts of an Islamist insurgency sweeping through the Sahel region, exacerbated by political instability following two military coups in 2022. According to the Sydney-based Institute for Economics & Peace, Burkina Faso accounted for nearly a quarter of the global casualties resulting from terrorist attacks in the same period.
In response to these challenges, six mining companies ceased operations in 2022, with an additional closure occurring last year. Consequently, the output of gold, a key precious metal for the nation, declined by 1.5% to 57.3 tons in 2023, as reported by the Ministry of Mines, Quarries, and Energy.
Brahim Kéré, the director of forecasting and macroeconomic analysis at the ministry, described 2023 as a particularly challenging year marked by security concerns with significant economic and social repercussions. He highlighted how terrorist attacks led to the shutdown of certain mining sites and created logistical hurdles, including difficulties in the supply chain of essential resources such as fuel and materials.
To address the economic impact of these disruptions, Burkina Faso revised its mining code to secure higher royalties during periods of economic prosperity. Additionally, the nation implemented measures such as suspending mineral exports by small-scale miners last month.
Despite these challenges, some mining companies continue their operations in Burkina Faso, including West African Resources Ltd., Endeavour Mining Plc, and Iamgold Corp. These companies navigate the complex landscape, striving to maintain their activities amidst the security and economic uncertainties prevalent in the region.
