Burkina Faso Halts Export Permits for Small-Scale Gold Production

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Burkina Faso’s military junta has announced the immediate suspension of the issuance of export permits for artisanal and semi-mechanised gold and other precious commodities. The decision aims to address the need for reform in the sector and improve the organization of gold and other precious substance markets. However, the statement did not specify the duration of the suspension.

Mining groups with material to export are directed to contact the National Society for Precious Commodities (SONAP) for compensation. Gold is a crucial export for Burkina Faso, representing 37% of total exports in 2020 and serving as a significant source of employment.

Despite the importance of the gold industry, Burkina Faso has faced challenges, including an Islamist insurgency and political instability, which have impacted exploration and gold output. These issues have led to mine closures and reduced production in recent years, contributing to frustration and two military coups in 2022.

The impact of the new export suspension on the gold industry and the economy is uncertain. Artisanal production plays a substantial role in the gold sector of West Africa’s Sahel region, including Burkina Faso, accounting for nearly half of industrially produced gold, according to a 2019 Crisis Group report. An estimated 1 million people are involved in artisanal gold mining in Burkina Faso, producing around 10-30 tonnes of gold annually.