Sahel instability threatens to turn Burkina Faso’s gold boom to bust

The impoverished citizens of Burkina Faso have missed out on a gold mining boom over the last decade, as the West African country loses territory to Islamist militants and lurches from coup to coup, threatening to turn the boom to bust.

As the fourth largest gold producer in Africa, Burkina Faso has been in the midst of a modern gold rush. With the precious metal present in every region of the country, the mining industry has steadily grown in the West African nation over the last decade, and the artisanal and small-scale mining (ASGM) sector has grown along with it. But this year is on track to be the deadliest for the country since the Sahel crisis began more than a decade ago, according to the Armed Conflict Location and Event Data Project (ACLED). And with the growing security risks, it does not come as a surprise that “we see the gold industry declining in Burkina over the next five to ten years,” said Richard Hyde, Executive Chairman and CEO of West African Resources. Security risks mean little exploration is happening, he added.

Gold is Burkina Faso’s main export, accounting for 37% of total exports in 2020, and mining is a leading source of jobs. But now many mining sites have been closed, such as the Karma mine in June after a militant attack that left one worker and one soldier dead. Karma is only one of at least four gold mines that halted production this year because of security risks.

Also, Russia’s Nordgold in April stopped mining at Taparko, saying the lives of its staff were in danger. And since there are estimated three or four contractors and services workers for each person directly employed by a mine, Burkina Faso’s whole economy is at risk. At current rates, Burkina Faso is set to produce 13% less gold this year than in 2021, in part because of mine closures, government statistics show.