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.
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).
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.
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.
|Zinc||6||million metric tons||The Perkoa zinc mine holds some of the largest zinc deposits in Africa. 14.5% Zn.|
|Copper||70||million metric tons||0,35% to 0,25% Cu.|
|Manganese||19||million metric tons||45% to 55% Mn.|
|Iron, titanium and vanadium||66||million metric tons||35% Fe2O3 with 35000 tons of V205 at 0,7%.|
|Nickel||30||million metric tons||1,2% to 1,5% Nickel and 0,05% Cobalt.|
|Bauxite||12.7||million metric tons|
|Limestone||93.1||million metric tons||45% to 55% CaCO3.|
|Dolomite||20.7||million metric tons|
|Phosphates||131.2||million metric tons||20% P205.|
The latest EITI disclosures (2016) 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.
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.
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. In 2015, Burkina Faso launched the a project on 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-2019.
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 2016 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 undertook a study on CO2 emissions in its mining sector, including possible reduction and mitigation measures. Piloted by the EITI Secretariat in Ouagadougou, the study was 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.
Burkina Faso became an EITI Implementing country 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. Burkina Faso EITI Reports have covered the fiscal years 2008 to 2016, with the first EITI Report covering fiscal 2008 and 2009. The eight EITI Report, covering the fiscal year 2016, was published in December 2018.
The MSG Chair is the representative of the Minister of Economy, Finance and Development. The National Coordinator is Alice ZIDA THIOMBIANO.
Burkina Faso's 2019 EITI Report covers extractive activities in the country for that fiscal year. The document is in French.
Le Rapport ITIE 2018 du Burkina Faso couvre les activités extractives du pays pour cette année fiscale.
Burkina Faso's 2017 EITI Report covers extractive activities in the country for that fiscal year. The document is in French.
On 13 February 2018, Burkina Faso was found to have made meaningful progress overall in implementing the EITI Standard. In this second Validation which commenced on 13 August 2019, the EITI International Secretariat is assessing the progress made in addressing the six corrective actions established by the EITI Board following the first Validation. See more under background below.
Burkina Faso's 2016 EITI Report covers extractive activities in the country for that fiscal year.