Gold for the People: Burkina Faso Finalises Nationalisation of Five Gold Mining Assets

Burkina Faso has completed the transfer of five gold mining assets to its state-owned mining company, Société de Participation Minière du Burkina (SOPAMIB), in a major stride toward reclaiming national control over strategic mineral resources. The move was confirmed through a government decree published late Wednesday, formalising a process that began in August 2023.

The assets include two producing gold mines and three exploration licences formerly held by subsidiaries of London-listed Endeavour Mining and Lilium Mining. These now fall under SOPAMIB, a state vehicle created in 2024 to oversee and manage critical mining operations.

The government cited the failure of a proposed asset transfer from Endeavour to Lilium as grounds for stepping in, calling the acquisition part of its “policy of sovereign ownership” designed to ensure that mining benefits are directed back to the population.

“This acquisition is in line with the state’s policy of sovereign ownership of mining resources to optimise exploitation for the benefit of the population,” the decree read.

A Continental Trend: Resource Sovereignty on the Rise

Burkina Faso’s move reflects a broader West African shift toward resource nationalism, joining regional peers Mali and Niger in re-evaluating legacy mining arrangements often seen as favouring foreign companies over local development.

The country, Africa’s fourth-largest gold producer, recorded more than 57 tonnes of gold output in 2023, with the sector contributing over 70% of national export revenue. Amid a 27% global gold price surge, the government has accelerated efforts to reclaim greater control over this critical industry.

As part of broader mining reforms, Burkina Faso recently increased its free-carried equity stake from 10% to 15% in new mining projects, reinforcing its long-term goal of ensuring national participation in and benefit from resource extraction.

Details of the Asset Transfer

The five transferred assets include:

• Wahgnion Gold SA

• SEMAFO Boungou SA

• Ressources Ferké SARL

• Gryphon Minerals Burkina Faso SARL

• Lilium Mining Services Burkina Faso SARL

Negotiations between Endeavour Mining and Lilium had stalled, prompting the government’s intervention to safeguard strategic mining interests and accelerate the process of nationalisation.

SOPAMIB, now tasked with operating these assets, is expected to serve as the central hub for managing all future state stakes in the extractive sector.

Investor Tensions and Local Commitments

While nationalist factions and Pan-Africanists have praised the move, international investors have expressed concern over legal certainty and long-term investment viability in the Sahel. Companies including Canada’s IAMGOLD, Russia-linked Nordgold, and Australia’s West African Resources Ltd are reportedly monitoring developments closely.

Nevertheless, the Burkinabè government has remained firm, stressing that revenues from nationalised operations will be reinvested into infrastructure, education, and national security—pillars of its post-coup development agenda.

“This is not a rejection of partnership,” said a government official. “It is a redefinition of partnership on more equitable terms.”

Balancing Sovereignty and Stability

Amid growing political shifts across West Africa, many states are seeking to break away from the resource-extractive models inherited from colonial systems—models that often prioritised export over equitable development.

Burkina Faso’s approach attempts to strike a balance: asserting national control while still welcoming international expertise, but under revised terms that ensure African agency and local benefit.

Analysts say the move may trigger legal challenges, particularly as legacy contracts come under review. Yet, for many within Burkina Faso and the wider Sahel, this marks an essential step toward reclaiming economic sovereignty.

Toward a More Just Mining Future

As the gold-rich nation consolidates its grip over a critical sector, Burkina Faso’s bold nationalisation initiative underscores a powerful Pan-African message: natural resources must first serve the people. With SOPAMIB now at the helm of five key assets, the country has entered a new chapter—one defined by assertive policy, resource control, and a vision of self-determined growth.