Burkina Faso Withdraws Industrial Exploitation Permits for Four Mines, Aims for Economic Recovery
The government of Burkina Faso made the decision to withdraw industrial exploitation permits for four mines in the country. This move, announced during a ministerial session, is aimed at promoting economic recovery in the affected areas and attracting new investors to continue mining activities.
The first mine, the Perkoa zinc mine operated by Nantou Mining Burkina Faso SA, a subsidiary of Canadian company Trevali Mining, faced the withdrawal of its permit due to a fatal flooding incident that occurred in April 2022.
The mine was ordered to be liquidated by a judicial tribunal, as the company did not have sufficient financial resources to resume operations.
The Yéou gold mine, operated by NORDGOLD YEOU SA, saw its permit withdrawn as it failed to provide a complete file for renewal after the license expired in March 2020. The government suspects non-compliance with regulations, suggesting an unwillingness to renew the license.
A small gold mine owned by KOMET RESSOURCES AFRIQUE SA, a subsidiary of Canadian company Komet Resources Inc., also had its permit revoked. The reasons for withdrawal include unauthorized suspension of mining activities for over two years, non-payment of mining taxes and royalties since the acquisition of the permit, and fraudulent gold marketing practices.
Similarly, the large gold mine operated by BALADJI GROUP MINING KALSAKA (BGMK) SA, an Indian company, faced withdrawal of its permit due to unauthorized suspension of mining activities and failure to demonstrate technical and financial capacity to continue operations.
The Burkina Faso government has stated that the withdrawal of these permits opens up opportunities for new investors to contribute to economic recovery and development in the affected regions.
The emphasis is on attracting investors, including African stakeholders, who can participate through popular shareholding facilitated by the Agency for the Promotion of Communal Entrepreneurship (APCE).
This decision highlights the government’s commitment to promoting local participation and ownership in mining projects, while seeking responsible investors to contribute to the country’s economic growth.