According to an order published on February 14, 2023, the Burkinabè government requisitioned 200 kilograms of gold belonging to Semafo, a subsidiary of the Canadian group Endeavor Mining. A requisition which is, in fact, a purchase. The government has also undertaken to respect the conditions for buying gold on the international market for this transaction.
But, faced with the speculation that this so-called “requisition” operation provoked, the government reacted on the evening of February 15 by recalling that it remains respectful of its commitments made with the mining companies.
The government recognizes the exceptional nature of the operation
The term “requisition” should therefore not be taken literally. It is a commercial operation that was even the subject of a contract in good and due form. The 200 kilograms of gold were purchased at market price, according to a source familiar with the matter. Endeavor Mining, the Canadian company, has already delivered them and is awaiting payment in the coming days. But everyone recognizes that this operation is not ordinary.
Usually, Endeavor Mining sends its gold to Switzerland to be refined there. Because the ingots that come out of the Burkinabè mines are raw and contain only 80% gold. The job is to come up with a 99.99% pure product. Mining companies therefore generally sell their gold to refiners and not to public entities such as states.
The government also recognizes the exceptional nature of the operation. It is a transaction, says a press release from the prime minister, ” dictated by an exceptional context of public necessity “. Moreover, the law authorizes it perfectly as soon as the operator is not harmed financially.
There remains the question that all of Ouagadougou is asking: why does the government need to buy 200 kilograms of gold? We know that Burkina Faso is engaged in a fight against jihadist groups. And that this war requires significant resources. But we also know that the State is normally financed on regional markets. Thus, this Wednesday, February 15, the Public Treasury of Burkina Faso collected nearly 30 billion CFA francs in Treasury bonds from the West African Economic and Monetary Union (UEMOA). So the Burkinabè state has money. He even received, at the start of the week, the support of the boss of the Central Bank of West African States (BCEAO), Jean-Claude Kassi Brou.
In the absence of official details on the reason for this purchase of gold, the Burkinabè are reduced to speculating.