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The transitional government in Burkina Faso has requisitioned 200 kg of gold produced by a subsidiary of the Canadian group Endeavor Mining for “public necessity”, according to an order from the minister in charge of mines. The text specifies that the mining company “will receive compensation corresponding to the value of the gold thus requisitioned”.
Burkina Faso has requisitioned 200 kg of gold produced by a subsidiary of the Canadian group Endeavor Mining, for “public necessity”, a decision “dictated by an exceptional context”, according to the transitional government of this country which is facing a serious security crisis.
A decree signed by the Minister of Mines, Simon-Pierre Boussim, on Tuesday February 14, announced the “requisition of the gold produced by the gold mining company of Semafo Burkina Faso”.
This decree stipulates that “in accordance with article 16 of the mining code”, 200 kilograms of gold produced at the Mana mine are “requisitioned today for public necessity”. The text indicates that the mining company “will receive compensation corresponding to the value of the gold thus requisitioned”, without further details.
On Wednesday evening, the government wanted to “reassure investors and all the other partners of Burkina Faso”. “The requisition decision is dictated by an exceptional context of public necessity which founds the State to ask certain mining companies to sell it part of their gold production”, continues a press release from government spokesperson Jean-Emmanuel. Ouedraogo.
A production of 6.04 tonnes of gold in 2022
For several years, Burkina Faso has been engaged in a fight against jihadist groups linked to the Islamic State and Al-Qaeda, whose bloody attacks have intensified in recent weeks.
The government press release specifies that this transaction “on an exceptional and temporary basis” is carried out “under the conditions of purchase of gold on the international market”.
According to the Burkinabè mining code, “mining or quarry installations and the substances extracted may only be requisitioned or expropriated by the State for reasons of public necessity and subject to fair and prior compensation” fixed by agreement between the parties or by an arbitral or common law tribunal.
In operation since March 2008, the Mana gold mine, one of the largest of the ten in Burkina Faso, produced 6.04 tonnes of gold in 2022, according to official figures.
It is owned by Endeavor Mining, which merged in 2020 with Canada’s Semafo to form one of West Africa’s largest gold producers.
With AFP