On Tuesday 25 July 2023, the Transitional Legislative Assembly (ALT) unanimously adopted an amendment to the Mining Code Act. The law was amended to allow the government to deduct part of the resources of the Local Development Mining Fund, intended for local authorities, to support the peace effort.
“We have asked the National Assembly to allow the government to take part of the Local Development Mining Fund (LDMF), which was previously earmarked to finance communal and regional development plans, in order to provide some support for efforts to secure the territory”, said Simon-Pierre Boussim, Minister of Energy, Mines and Quarries.
To achieve this, it was necessary to amend Articles 26 and 30 of the 2015 Mining Code (Act No. 036-2015/CNT of 26 June 2015 on the Mining Code in Burkina Faso), which relates to the LDMF.
The current version of the Mining Code states that the LDMF’s resources come from 2 sources: 1% of the turnover of operating companies and 20% of the proportional royalties collected by the State.
These resources are collected and distributed on a half-yearly basis to the communes and regions for social investment. The amendment will make it possible to set aside a portion for the Patriotic Support Fund, as the amended law states: “The Local Development Mining Fund is allocated to financing the Patriotic Support Fund during its operation as follows: 85% of the 20% of proportional royalties collected by the State and linked to the value of products extracted and/or sold; 20% of the 1% of monthly turnover excluding tax and/or the value of products extracted during the month by holders of industrial mining permits and beneficiaries of industrial quarrying authorisations.
Minister Simon-Pierre Boussim was keen to point out that the levy will be applied to the overall amount of the LDMF and not individually to each local authority. As a result, only the overall amount paid into the LDMF will be affected (downwards). However, the LDMF’s distribution key between local authorities remains unchanged.
With the amendment of this Law No. 036-2015/CNT of 26 June 2015 on the mining code in Burkina Faso, the government expects to contribute an average of 17 billion FCFA a year to the peace effort.
Minister Simon-Pierre Boussim thanked the National Assembly for authorising the amendment to the law that the government had requested.
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