Omanghana
Burkina Faso has significantly increased state ownership and control of its gold industry under the leadership of President Ibrahim Traoré, marking a major shift away from decades of foreign-dominated mining operations.
Since 2024, the government has implemented a series of reforms and acquisitions aimed at ensuring that a larger share of the country’s mineral wealth remains under national control and contributes directly to economic development.
One of the most notable moves came in August 2024 when the government acquired the Boungou and Wahgnion gold mines for approximately $80 million. The assets had previously been owned by Endeavour Mining before a proposed sale to Lilium Mining failed to materialize. The acquisition was widely viewed as a strategic step toward strengthening state participation in the country’s most valuable natural resource sector.
The government’s involvement expanded further in April 2026 when authorities approved the purchase of an additional 25 percent stake in the Kiaka gold mine. The transaction, valued at around 70 billion CFA francs, or approximately $125 million, increased the state’s ownership share in the project to 40 percent.
As part of a broader consolidation strategy, five major mining assets and exploration licenses were transferred to the state-owned Société de Participation Minière du Burkina (SOPAMIB) by June 2025. The move reinforced the government’s long-term objective of building a stronger national presence across the mining value chain.
Alongside these acquisitions, Burkina Faso introduced sweeping regulatory reforms. In July 2024, the country adopted a new mining code that increased the state’s mandatory free-carried interest in all mining projects from 10 percent to 15 percent. The revised legislation is designed to provide the government with a greater share of profits from mineral extraction without requiring additional capital investment.
The administration has also prioritized domestic processing of mineral resources. In 2024, Burkina Faso launched its first national gold refinery, ending its dependence on exporting raw gold for processing abroad. The facility has the capacity to refine up to 150 tonnes of gold annually and is expected to add value to the country’s exports while creating local employment opportunities.
Government officials say the reforms are already producing tangible results. As of May 2026, domestic and state-backed operators reportedly controlled six of the country’s 15 active industrial gold mines. Gold production reached a record 94 tonnes in 2025, reflecting the growing importance of the sector to the national economy.
Authorities have stated that revenues generated from the country’s expanding gold industry are being directed toward key national priorities, including defense, healthcare, and infrastructure development. The government’s strategy forms part of a broader effort to strengthen economic sovereignty and reduce reliance on foreign ownership in strategic sectors.
With gold remaining Burkina Faso’s most important export commodity, the Traoré administration’s policies represent one of the most ambitious efforts in recent years to place the country’s natural resources under greater national control while leveraging mining revenues to support long-term development goals.
Source: Omanghana
