Burkina Faso has officially transferred five gold mining projects to state ownership, marking a decisive step in its push to reclaim control over natural resources and increase state revenue amid soaring global gold prices.
The transfer, formalised in a decree issued late Wednesday, sees two operating mines and three exploration licences handed to the Société de Participation Minière du Burkina (SOPAMIB) — the national mining holding company established by the government to manage strategic assets.
This move concludes a process launched in August 2024 following reforms to the country’s mining code, and aligns Burkina Faso with neighbours like Mali and Niger, which are similarly shifting towards greater resource nationalism.
From stalled deal to state takeover
The five assets were previously held by subsidiaries of Endeavour Mining and Lilium Mining, including Wahgnion Gold SA, SEMAFO Boungou SA, Ressources Ferké SARL, Gryphon Minerals Burkina Faso SARL, and Lilium Mining Services SARL.
A proposed deal for Lilium to acquire Endeavour’s interests had stalled, prompting the Burkinabè government to step in. In the decree, the state said the acquisition is consistent with its policy of ‘sovereign ownership of mining resources to optimise exploitation for the benefit of the population’.
Gold surge fuels national drive
Burkina Faso, currently the fourth-largest gold producer in Africa, produced over 57 tonnes in 2023. With gold prices rising by 27 percent in 2025, authorities see domestic ownership of mining assets as critical to capturing more value for public spending and infrastructure development.
The nationalisation move also reflects long-standing concerns over the limited benefits local communities have derived from foreign-operated mines. SOPAMIB, created in 2023, is now tasked with reshaping the landscape of gold exploitation in favour of national interest.
Investor unease grows
While the government hails the move as a step toward economic sovereignty, international investors are growing wary. Firms including Canada’s IAMGOLD, Russia’s Nordgold, and Australia’s West African Resources have expressed concern about the unpredictable regulatory climate and the erosion of contractual protections.
Analysts say Burkina Faso’s shift toward state control could prompt renegotiations or exits, reshaping the risk calculus for global investors in West Africa’s mining sector.
Nevertheless, the government insists that the new approach is not anti-investor but pro-sovereignty — with the goal of ensuring the country’s vast mineral wealth benefits its people, not just foreign shareholders.
Credit: Africabrieifng
