Burkina Faso’s military-led government has granted a fresh gold mining licence to the Russian company Nordgold, according to cabinet meeting minutes reviewed by AFP on Friday.
Gold mining is a significant part of Burkina Faso’s economy, contributing approximately 14 percent of the country’s state revenue, based on official statistics. The nation has recently been strengthening its diplomatic and military ties with Russia.
“The Council of Ministers adopted a decree granting an industrial mining licence for a large gold mine called Niou to the company Nordgold Niou,” the minutes stated.
The new licence covers an area of 52.8 square kilometres, with expected total gold production exceeding 20.2 tonnes over an eight-year period.
According to the government document, the Niou project is forecast to generate 51 billion CFA francs ($88.7 million) for the state, along with an additional seven billion francs ($12.2 million) for the Mining Development Fund.
Furthermore, the project is expected to create 204 jobs — 75 direct and 129 indirect — the minutes noted.
Gold has overtaken cotton to become Burkina Faso’s leading export over the past decade, with 17 active mines producing around 70 tonnes annually.
Since 2015, the country has grappled with jihadist insurgencies linked to Islamic State and Al-Qaeda, severely impacting national stability.
The nation has been under military rule since September 2022, following a coup led by Captain Ibrahim Traoré.
This is not the first permit Nordgold has secured under the current junta; it also holds a licence for the Yimiougou mining site, covering 31.4 square kilometres with projected gold production of 2.53 tonnes.
Earlier this year, Burkina Faso, alongside Niger and Mali, withdrew from the Economic Community of West African States (ECOWAS), accusing the bloc of failing to curb jihadist violence. The three countries subsequently formed the Alliance of Sahel States, signalling a political shift away from France and towards Russia.
Moscow has since established defence agreements with the alliance and expanded cooperation in sectors such as energy and mining.
