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16 April 2015

Burkina Faso: A record production of 1.17 million ounces of gold in 2014

16 April 2015

Ouagadougou, Burkina Faso,04/16/2015 (Burkina Emine) – The Council of Ministers held in regular session on 1st  April 2015 adopted under the Ministry of Mines and Energy (MME) two reports respectively on the mining sector situation and the deficit of electricity supply.

The first report on the state of the mining sector in Burkina and its perspectives highlights a dynamic and productive mining sector.

Gold Production

With a record gold production of 36.503 tonnes (1.17 million ounces Au) in 2014 against 32.527 tonnes in 2013, an increase of 12%, Burkina Faso remains the fourth largest gold producer in Africa (after South Africa, Ghana and Mali) and has a strong potential to increase production.

Gold production comes from seven (7) industrial mines in the country as presented in the table below (Compilation by Burkina Emine sourced from the mentioned companies’ public data), “Small – scale mining” (semi-mechanized and artisanal gold mining) being a poor contributor.

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Zinc and Lead Production

As at December 31, 2014, Burkina Faso had exported 143,944 tons of zinc concentrate and produces 3,803.74 tonnes of lead concentrate.

These productions are from the single mine in country, Glencore’s Perkoa Zinc mine.

Exploration and development

The country has nine hundred eighty-six (986) valid “authorization” and mining claims of which 668 valid research permit that includes many advanced projects (see map).

The political transition installed in November 2014 amid the popular uprising has also demonstrated the country’s ability to meet its commitments towards mining investors by awarding five (05) operating licenses for industrial gold mines in January 2015.

Burkina Faso record  production_2014_Final_page3_image1

Operating Mines and Advanced projects in Burkina Faso (2014)

Contribution to the State Budget

The report highlights a strong impact of the fall in the average gold price in the international market from US $1477 per ounce in 2013 to US $1230 an ounce as at 13 February 2015, resulting in a decrease in the contribution of mining revenues to the budget of the government of Burkina Faso, which rose from 191.408 billion CFA francs in 2013 (US $ 382,052,000) to 168.483 billion CFA francs (US $ 336,293,000), representing a shortfall of 12%.

The deterioration of the social climate around mining projects amid conflicts of interest between local communities and mining companies will considerably delayed two new industrial mines to enter into production.

Burkina Faso mining sector challenges

A more efficient mining sector in Burkina Faso will increase production. But the benefit of a competitive mining sector is not limited to the contribution to the state budget. It’s a challenge that plays both internally and internationally.

Nationally, a “profitable mining sector” is one that truly take into account the socio-economic challenges related to mining activity such as communities demands, the issues of illegal  small scale gold mining, source of destruction of the environment, migration, de- schooling, of agricultural abandonment, misspent youth. This dynamic includes post-mining with the initiation and/or re-enforcement of public politics aiming at fixing young people in their land with viable projects, local jobs creation, access of local businesses to procurement of mines and mining companies, training, etc….

Internationally, investors will wait to see the capacity of Burkina Faso to surpass their differences to the best interests of the nation.

In this regard, the challenges are many and the most pressing are:

  •   Held of “free, transparent and fair” elections.
  •   Settlement of industrial disputes
  •   Mining Code revision and resulting mining regulations
  •   Improving a fair investment climate
  •   Dealing with illegal mining

The Council said to have “instructed the ministers concerned to take appropriate measures to reduce conflict and improve mine production for its contribution to economic and social development of Burkina Faso.”

Burkina Faso may nevertheless rely on the quality of its ground. The beginning of construction of the Yaramoko’s gold mine with its high gold grades, the increase of SEMAFO’s Mana / Siou mine reserves in conjunction with its recent acquisition of Orbis Gold, the increased production capacity of the Essakane gold mine, the starting of a project to build a School of Mining in Burkina Faso by the Chamber of Mines in partnership with the Chamber of Commerce and Industry are all signs of dynamism instilled in Burkina Faso mining sector.

Burkina Emine intends to play its part in this “success story”.

The second report depicts the country current deficit in electricity supply and alternative measures to be taken.

“The second report relates to measures to curb the power deficit in electricity supply relative to demand for the period from March to June, 2015.

These measures are to negotiate a reduction in energy consumption or an exit from public electricity supply with customers with self-generation sources at peak times during the warm period, to institute rational use of electricity in buildings of Public Administration and negotiate amounts of extra energy with the Ivorian Party.

The Council instructed the ministers concerned to make appropriate arrangements for the effective implementation of the measures envisaged to reduce the extent of shedding the negative consequences for the national economy” (Extracted from the Council of Ministers Official Press Release).

16 April 2015

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16 April 2015
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To read on burkina-emine: INDUSTRIAL GOLD PRODUCTION IN BURKINA 2016 HIGHLIGHTS AND 2017 CHALLENGES .

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