Burkina Faso

EITI Status Meaningful progress
EITI Member Since 2009
Latest Data From 2015
Latest Validation 2018

Overview

The mining sector in Burkina Faso is considered one of the most dynamic in West Africa. The development of the mining sector was made possible through intensified investment, the opening of industrial mines and an evolution of the legal and regulatory framework for the sector. The main resources are gold, zinc, copper, manganese, phosphate and limestone. Traces of diamonds, bauxite, nickel and vanadium have been recorded in various geological formations. However, gold remains the most exploited ore in Burkina Faso.

Beneficial ownership disclosure

There is currently no government policy for beneficial ownership disclosure. In the absence of a legal framework, the EITI Committee had decided to disclose the actual ownership data in the EITI Report for companies included in the reconciliation scope. To this end, the Committee adopted the definition provided for in the EU's fourth Anti-Money Laundering Directive.

Burkina Faso published a beneficial ownership roadmap for the publication of beneficial owners in the mining sector by 1 January 2020. The vision of the roadmap is stated as ‘the free access by all Burkinabe citizens to data from license registers, mining contracts and the identity of the physical persons who hold mining assets in Burkina Faso, or who control mining companies by 2020". The roadmap has four main axes, namely (i) the institutional and legal framework (ii) capacity building (iii) information, communication and publication and lastly (iv) partnership and cooperation. The study identifies risks in the implementation of the roadmap such as a lack of financing, poor buy-in by mining companies, a lack of reliable information and difficulties in accessibility and poor coordination between the organisations involved.

The 2015 EITI Report was unable to clearly identify any beneficial owners. It was however able to identify physical persons for 2 of the 23 companies, namely SEMAFO and SMB. 12 companies are known to be publicly listed mainly on the Toronto, London and Australia stock exchanges (IAM GOLD Cooperation, SOMITA, BMC, BISSA Gold, OREZONE INC SARL, Gryphon Minerals Burkina Faso, High River Gold Mines WA, Kiaka gold, BIRMIAN Resources, Riverstone Resources NC, Jilbey Burkina SARL and Roxgold Sanu).

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

According to data provided by the General Directorate for Mines and Geology and the Cadastre (DGMGC), the total industrial production of refined gold for 2015 was 36.17 tonnes. Based on mining companies’ declarations, gold production at the end of 2015 amounted to 35.1 tonnes of refined gold at a valued of USD 1,419 million. Zinc production amounted to 134 643 tonnes in 2015. The value of zinc production was USD 54.5 million. No manganese production was recorded during the period 1 January to 31 December 2015.

A parliamentary inquiry into the mining sector published in 2016 included a review of the artisanal exploitation of gold, and in particular, informal production (p. 70).17 According to the results of the survey, production from informal gold mining was estimated to be between 15 and 30 tonnes per year for the period 2006-2015, with a shortfall in tax revenue for the State estimated at USD 182.4 million.

The country’s main exploration projects include Essakane (gold), Mana (gold), Inata (gold), Taparko (gold), Youga (gold), Bissa (gold) and Perkoa (zinc and iron-silver). There were 5 projects under construction as at 31 December 2017 notably Tambao manganese, Seguenega gold, Narissiguima gold, Niaka Nogbele gold and Bagassi Balé.

Gold Production (Tonnes)

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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.

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Reconciled revenues by top 5 companies

Revenue allocation

Like budget revenues, revenues from the mining sector are collected and allocated in accordance with the principle of budget universality. This consists of combining all the fiscal resources into one fund, and in charging all the public expenses to this fund without distinction. Payment flows not directly allocated to the national budget are limited to: municipal taxes (road taxes and entertainment taxes) paid to local authorities and contributions to the National Bureau for Environmental Evaluations (BUNEE) and the Environmental Rehabilitation Fund (FRE). Municipal taxes are not applicable to the mining sector.

Policy recommendations and reforms

The 2015 Mining Code includes innovations, such as the abolition of the mining convention in the exploration phase; the obligation for holders of mining titles and their subcontractors to grant "preference to Burkina Faso enterprises for any contract for the supply of services or supplies of goods under equivalent conditions of price, quality and time"; the possibility, exceptionally, to submit to competition, the mining rights or the authorisations considered as assets; penalizing illegal activities related to the trade, transport, possession and illegal storage of rough diamonds; and banning and penalizing the use of mercury, cyanide and other hazardous chemicals.

Since 2015, Burkina Faso has launched the modernisation of its mining cadastre with the support of the World Bank, including the installation of a new computerised system. The finalisation of the project is expected mid-2018.

Social and economic contribution

On a macroeconomic Level, the contribution of the extractive sector to GDP in 2015 amounted to USD 11.7 billion, that is 6.9% of nominal GDP. Total government revenue amounted to USD 1 886 billion in 2015. Mining revenue amounted to USD 299.9 million (166,596 billion XOF), approximately 15.9% of total government Revenue in 2015. Total export revenue amounted to USD 2.5 million in 2015. The contribution of the mining sector to exports was 65.2% in 2015. 62.8% of revenues came from gold exports and 2.3% of revenues from zinc exports. The sector employed approximately 7035 persons in the industrial mining sector.

The new Code imposed a 1% levy on the monthly turnover of mining companies, for local development and the transfer of 20% of the proportional royalties collected by the State, in favour of the budget of local government units. These local devleopment funds were being established as at 31 December 2017.

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

The government of Burkina Faso committed to implement in 2008. On 16 April 2008, the Council of Ministers adopted decrees creating the Supervisory Committee, a Steering Committee and a Permanent Secretariat. On 15 May 2009, the country was admitted a candidate country. In February 2013, Burkina Faso was recognised as compliant with the EITI Rules (EITI, 2013). Burkina Faso EITI Reports have covered the fiscal years 2008 to 2015, with the first EITI Report covering fiscal 2008 and 2009. The seventh EITI Report, covering the fiscal year 2015, was published in March 2017.

Validation

Burkina Faso's Validation against the Standard commenced on 1 April 2017. Burkina Faso was found to have achieved meaningful progress in implementing the EITI Standard in February 2018.

Burkina Faso's progress by requirement