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Burkina Faso political turmoil hits junior gold companies

VANCOUVER — Burkina Faso has rightfully earned its reputation as a relatively stable jurisdiction for mining companies, but social conditions in Africa can change quickly. On Oct. 31 former president Blaise Compaore stepped down after...



VANCOUVER — Burkina Faso has rightfully earned its reputation as a relatively stable jurisdiction for mining companies, but social conditions in Africa can change quickly. On Oct. 31 former president Blaise Compaore stepped down after tens of thousands of people took to the streets of the West African nation – many in the capital of Ouagadougou – in protest.

… Burkina Faso’s army subsequently moved into the power vacuum, with Lieutenant-Colonel Isaac Zida placed as the country’s interim president. At the time of writing Zida had issued a statement indicating the army would cede power to civilian leaders following “broad discussions with various groups.”

Burkina Faso has updated and modernized its mineral code, which was amended in late 2010 to increase the government’s net smelter royalty return (NSR) rights. Under current policy the NSR stands at 3% if the gold price is at US$1,000 per oz or less; 4% if the gold price eclipses US$1,000 per oz; and 5% if the gold price jumps above US$1,300 per oz. The government also retains a 10% non-participating carried interest on mining projects. In 2013 the Fraser Institute ranked Burkina Faso second in Africa and 27th worldwide under its mineral potential index, which is based on whether a jurisdiction’s mineral potential under the current policy environment encourages or discourages exploration.

Read the complete article at NorthernMiner.com/news/burkina-faso