- 6 operating mining projects and several research projects closed
- Over 2,500 jobs lost
- 24.8 billion FCFA in lost revenue
- Increased production costs for operating companies
The all-out terrorist attacks that Burkina Faso has been experiencing since 2015 are having a serious impact on the industrial mining sector. The sector contributed 14.3% of state revenue in 2020 according to data from the Extractive Industries Transparency Initiative (EITI).
There are several closed research projects. Research areas have become inaccessible if they are not occupied by terrorist groups. The most appalling case occurred on 16 January 2019. A Canadian geologist from Progress Minerals was kidnapped from a research site in the Sahel region and executed. The closure of research projects is not likely to ensure a bright future for the mining sector. The time will come when it will be difficult to develop new mining projects because there is a lack of research.
Terrorist attacks have led to the closure of 6 mining projects. The Ouaré mine of the Avesoro company was attacked on 30 January 2022. However, it was the ore from this mine that was supposed to supply the Youga plant, whose ore had expired. Youga was waiting for this ore and Nietiana was under construction (underground mine). Following the attack on Ouaré, Avesoro decided to suspend the activities of the 3 mining permits.
In April 2022, the company Nordgold suspended operations at its Taparko mine. Nordgold justifies this suspension by terrorist incursions on the site and problems of access to the site. In early October 2022, Bouroum, a satellite site of Taparko, was attacked and four people were killed.
The Riverstine Karma mine was attacked on 9 June 2022. Two people were killed in the attack. The mine has suspended operations.
The Perkoa zinc mine has ceased operations. Even if this stoppage is not related to the terrorist attacks, it deserves to be mentioned. Indeed, the flooding of the mine on 16 April 2022 resulted in the death of 8 people. After a court case, the mine decided to proceed with a liquidation of the company.
The number of jobs at risk is estimated at 2,572 as a result of the closure of the 6 mining projects. The closure of these mines also results in a loss of revenue for the state. The loss of revenue is approximately 24.865 billion FCFA. This sum does not take into account the loss of revenue for the budgets of the communities, which will no longer receive surface taxes, patents, the mining fund for local development, etc. The 24.8 billion FCFA also does not take into account the loss of contracts for local subcontractors who will no longer pay local taxes and employ local staff.
The terrorist threat impacts all mines in the country. Mines that are not attacked invest huge amounts of money in transporting workers by plane. Added to this is the expense of securing land convoys for supplies. All these expenses increase the operating expenses of the mines and reduce the taxable margins. To meet these expenses, jobs are under threat. Fixed-term contracts are not being renewed and new recruitment is being stopped in order to reduce costs as much as possible.
Elie KABORE
#Mines_Actu_Burkina
