Burkina Faso has granted an industrial mining licence to Russian company Nordgold for a new gold project amid soaring global prices for the precious metal, according to Reuters.
The agreement covering the Niou deposit in the Plateau-Central region represents a deepening of economic relations with Moscow, as the West African nation continues to pivot away from traditional Western allies following the 2022 military takeover.
Last year, Burkina Faso reaffirmed its commitment to strengthening ties with Russia, emphasising the partnership extends beyond military cooperation.
The gold deposit spans 52.8 square kilometres within the exploration licence area previously held by Jilbey Burkina, now owned by Nordgold.
Government officials said the project is expected to produce approximately 20.22 metric tonnes of gold over its eight-year lifespan.
Under Burkina Faso’s new mining regulations, Jilbey Burkina will retain an 85% ownership stake in the project, while the Burkinabe government will hold the remaining 15% without any financial contribution.
The Council of Ministers projects the mine will generate 51.5 billion CFA francs (£69 million) for the state budget over its operational lifetime, with an additional 7.06 billion CFA francs allocated to the country’s mineral wealth fund.
The development comes as gold prices have surged by more than 25% this year, driven by geopolitical tensions and trade policies under US President Donald Trump.
Despite battling an Islamist insurgency since 2015, Burkina Faso remains a significant gold producer, with mining-focused NGO Swissaid reporting that the country produced over 57 tonnes of gold in 2023.
The Niou project will be developed in an area currently dominated by artisanal mining, potentially displacing many local miners who depend on the region for their livelihoods. Officials said the project is expected to create 204 jobs and support employment at the nearby Bissa Gold SA mine.
