Burkina Faso grants Nordgold a mining license for the Niou gold deposit

Burkina Faso has granted a mining license to Russian firm Nordgold for the Niou gold deposit in Kourweogo province. The project, expected to yield 20.22 tonnes of gold over eight years, aligns with the country’s strategy to leverage rising gold prices for economic growth amid security challenges.

Burkina Faso, a key gold producer, reported over 57 tonnes of gold output in 2023. The increase in gold prices—over 25% this year—is linked to geopolitical factors and U.S. trade policies. The Niou project, covering 52.8 km² in the Plateau-Central region, is part of Burkina Faso’s pivot toward Russia, strengthening economic ties beyond its traditional Western partnerships.

Nordgold, which also operates the Bissa and Bouly mines in the region, will hold an 85% stake in the Niou project, with the Burkinabe government maintaining 15% ownership without financial contribution. The mine is projected to generate CFA Fr51.5bn ($89.2m) for the state budget and CFA Fr7.06bn for the mineral wealth fund.

While the initiative is expected to create 204 jobs and support employment at the nearby Bissa Gold SA mine, concerns exist over its impact on local artisanal miners. Experts highlight the project’s importance in addressing Burkina Faso’s budgetary constraints, though displacement of informal miners remains a challenge.

In related news, Canadian mining company Fortuna Mining finalized the sale of its stake in Roxgold Sanu, operator of the Yaramoko gold mine, to Soleil Resources International for $130m.