Burkina Faso nationalizes strategic gold assets

Burkina Faso’s military-led government has completed the nationalization of five gold mining assets,marking a significant pivot in its economic strategy aimed at asserting greater control over the country’s mineral wealth,international media reported.

The move,finalized through a government decree earlier this month,transfers ownership of two producing gold mines and three exploration permits from foreign operators to the state-owned mining company,Société de Participation Minière du Burkina (SOPAMIB).

The assets were previously held by subsidiaries of Endeavour Mining and Lilium,whose stalled merger talks prompted state intervention. The government cited “strategic national interest” and the need to “preserve sovereign control over critical resources” as justification for the takeover.

Since seizing power in 2022,Burkina Faso’s military leadership has increasingly emphasized economic sovereignty,particularly in the extractive sector. The nationalization aligns with a broader regional trend,following similar moves by neighboring Mali and Niger.

The government has pledged to reinvest revenues from the nationalized assets into infrastructure,education,and security,key pillars of its post-coup development agenda.

While the move has been welcomed by nationalist factions,it has raised concerns among international investors about the stability of mining contracts in the Sahel region. Burkina Faso,Africa’s fourth-largest gold producer,relies heavily on mining for export earnings and employment.