Tue. Sep 26th, 2023

Burkina Faso Purchases Gold from Endeavour Mining to Fund Battle Against Jihadist Insurgency | Editorial Analysis by Lenny “Rainbow” Ace

Endeavour Mining, the largest gold miner in Burkina Faso, has sold 200 kilograms of gold from its Mana mine to the West African country’s government. The UK-based company confirmed that the sale is in line with the country’s Mining Code which allows the government to acquire gold directly from mining companies under certain circumstances. Burkina Faso’s energy and mines ministry issued a statement saying it had “commandeered” the gold for “public necessity,” which is a universal means of purchasing foreign currency to shore up reserves. The company will be compensated for its value, however, the statement did not provide further details.

The sale comes at a time when Burkina Faso is battling a jihadist insurgency, which has led to two military coups in the country. The country’s military leader, Ibrahim Traore, who seized power in September 2022, has vowed to crack down on the insurgency spreading across the West Africa’s Sahel region. As a result, the government has increased the security budget and set up a “patriotic support fund” to raise money for the mass recruitment of volunteer auxiliaries to support the army.

Although the Burkina Faso government did not provide any details regarding the purchase, the move could provide financial support to the government’s fight against the jihadist insurgency. This sale demonstrates the country’s Mining Code in action, which allows for direct sales from mining companies to the government under exceptional circumstances.

Endeavour Mining acquired the Mana mine in July 2020 as part of its acquisition of Canada-based gold miner Semafo. The company owns 90% of the mine, while Burkina Faso’s government owns the remaining 10%. This sale could also strengthen the relationship between Endeavour Mining and the government of Burkina Faso, which is crucial for the success of the company’s mining operations in the country.

The opinions expressed in this publication are those of the author.
They do not purport to reflect the opinions or views of the AMeAR|News, R2iNTEL or its members.

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