Burkina Faso

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2009
Latest Data From 2013

Overview

The country is a leading producer of gold, as well as zinc since 2013. Yet social conflicts around the environmental impacts of mining operations, social expenditures and the redistribution of extractives revenues have been widespread. In addition to national EITI implementation, Burkina Faso also participated in the beneficial ownership pilot and undertook a study of CO2 emissions from its mining industry.

Beneficial ownership disclosure

Burkina Faso's EITI Reports have so far disclosed legal owners of mining companies, including country of incorporation, percentage participation and the name of stock exchange for listed companies. Burkina Faso has compiled a beneficial ownership scoping study which suggests a definition of beneficial ownership, provides an overview of the legal and regulatory framework, and outlines existing reporting obligations for politically exposed persons.

Burkina Faso’s evaluation report from the beneficial ownership pilot highlights incompleteness of the company declarations as the major challenge, both in terms of declarations submitted through the EITI reporting process as well as incompleteness of declarations upon company registration in the country. The evaluation report provides some suggestions for supporting documents that could be requested from the companies in the future to help verify the identity of the beneficial owners, such as company registration, proof of residence, etc. 

In conditions of total opacity, we cannot continue to expect that the mining sector, a pillar of our economy, can really benefit all Burkinabe citizens. We are going to look very closely to determine if contracts need to be reviewed, cancel some licenses or concessions and redistribute them in transparent conditions.
HE Yacouba Isaac Zida, Prime Minister

Production

Burkina Faso is a leading producer of gold (Africa’s fourth-largest), but has also started producing zinc since 2013. Ongoing development of gold in the country’s centre, while development of manganese and zinc is taking place in the North and West respectively. While industrial gold mining has grown rapidly since the first mine opening in 2005, the more than one million artisanal miners account for a significant share of production. Despite the lack of reliable statistics on artisanal mining, the 2013 EITI Report cites estimates of up to 8 million metric tons smuggled out of the country annually.   

Initializing chart.

Natural resources

Burkina Faso has rich deposits of gold, zinc, copper, manganese as well as iron, nickel, limestone, dolomite and phosphates. Abundant mineral resources are found along an arc from the country’s southeast to northwest. Gold reserves have grown rapidly in the past decade, with over 15 major discoveries since 2006.

CommodityReservesUnitSignificance
Gold154.2metric tons
Zinc6million metric tonsThe Perkoa zinc mine holds some of the largest zinc deposits in Africa. 14.5% Zn.
Copper 70million metric tons0,35% to 0,25% Cu.
Manganese19million metric tons45% to 55% Mn.
Iron, titanium and vanadium66million metric tons35% Fe2O3 with 35000 tons of V205 at 0,7%.
Nickel30million metric tons1,2% to 1,5% Nickel and 0,05% Cobalt.
Bauxite12.7million metric tons
Limestone93.1million metric tons45% to 55% CaCO3.
Dolomite20.7million metric tons
Phosphates131.2million metric tons20% P205.
Antimony700metric tons
Graphite9000metric tons
Marble100,000metric tons

Revenue collection

The latest EITI disclosures (2013) show that Burkina Faso received USD 407 million from extractive industry taxation. All of these revenues came from gold and were mainly collected through customs duties (30%), corporate income tax (28%) and royalties (16%). While there is no provision for signature bonuses or production premiums in the Mining Law, they are levied in practice.

Initializing chart.

Revenue allocation

Regional and municipal government receive only companies’ social expenditures and subnational transfers from the environmental intervention fund. All other revenues are centrally managed by the state.

Innovations

​The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • Burkina Faso participated in the beneficial ownership pilot and the 2012 and 2013 EITI Reports contained some beneficial ownership details (alongside legal ownership information).
  • The 2013 EITI Report discloses both mandatory and voluntary social expenditure, split between cash and in-kind payments. It also includes details of non-governmental beneficiaries.
  • Burkina Faso EITI is supporting the World Bank in its study of women in the industrial mining sector and further means of support from companies.
  • Burkina Faso is undertaking a study on CO2 emissions in its mining sector, including possible reduction and mitigation measures. Piloted by the EITI Secretariat in Ouagadougou, the study is supported by France and is part of Burkina Faso’s Intended Nationally Determined Contribution (INDC), submitted to the 21st COP in Paris in December 2015.  

Implementation

BF-EITI has updated its workplan, including 15 progress indicators to better document impact. It is also studying the feasibility of including artisanal and small-scale mining (ASM) and subnational reporting in its EITI implementation. It will be engaging with the Higher Supervisory Council to develop a three-year beneficial ownership roadmap.

Governance

The government issued Presidential Decrees 2008-810/Pres/PM/MEF/MCE and 2008-811/Pres/PM/MEF/MCE on 17 December 2008, establishing a two-tier structure for EITI implementation: the decrees establish the Supervisory Committee (Comité de Supervision) and the Steering Committee (Comité de Pilotage) respectively. The mandates of the Supervisory Committee and Steering Committee were renewed through Decrees 2009-90/MEF/SG/SP-ITIE and 2009-91/MEF/SG/SP-ITIE on 5 March 2009. Two decrees to enlarge both the Supervisory Committee and the Steering Committee were subsequently approved by the Council of Ministers on 14 July 2009.

Timeline

Validation

Burkina Faso's Validation against the Standard will commence on 1 April 2017. The country is compliant under the 2011 Rules.