- 28.29% of mining revenues collected in 2021
- Followed by Corporation Tax 18.64% and Customs Duties 17.65%.
- 383.5 billion FCFA in revenues generated by the extractive sector, including mining subcontractors in 2021
- The largest contributors: Essakane 20.31%, Houndé Gold Operation SA 15.66% and SOMISA 11.46%.
“Royalties were the main contributor, accounting for 28.29% of total net revenue, followed by corporation tax (Impôt sur les Sociétés – IS) (18.64%) and customs duties (17.65%). Reimbursements of VAT credits had a significant impact on revenues, representing 121.71 billion FCFA, or a negative contribution of 37.01% of budget revenues from the mining sector”. The information was given during the official presentation of the 13th report of the Extractive Industries Transparency Initiative (EITI-BF). The presentation took place on Tuesday 5 December 2023 in Ouagadougou at a press conference organised by the EITI-BF Steering Committee.
The EITI is a global standard created in 2003. It aims to promote participatory, transparent and accountable management of natural resources. It seeks to improve the governance of public and private services, contribute to public debates and strengthen trust between the people and those who govern them.
This EITI-BF 2021 report was drawn up by an independent administrator in accordance with the 2019 EITI standard. The main innovation in this report is the inclusion of local supplies for unilateral declaration by mining companies and the analysis of the security situation. It has reconciled the data (on payments, production and exports) provided by the mining companies with that provided by public entities.
“Based on data reported by government revenue authorities, after the reconciliation work, net revenues generated by the extractive sector, including mining subcontractors, for the year 2021 amount to 383.5 billion FCFA, compared to 291.70 billion FCFA in 2020, an increase of 91.80 billion FCFA”, says Nicolas Kobiané, Chairman of the EITI-BF Steering Committee. This sum has been paid by 17 mining companies, including one state-owned company, Burkina Faso Phosphate Company (Société d’Exploitation du Phosphate du Burkina Faso – SEPB).
The 03 largest contributors to budget revenues in the mining sector are Essakane SA, 66.806 billion FCFA, or 20.31%, Houndé Gold Operation SA, 51.51 billion FCFA, or 15.66%, and Sanbrado Mining Company (SOMISA), 37.683 billion FCFA, or 11.46%.
Total revenues collected from mining contractors will amount to 54.64 billion FCFA in 2021, compared with 55.21 billion FCFA in 2020, a decrease of 1.03%. This amount represents 14.25% of total revenues from the extractive sector in 2021 and 17.12% of the contribution to budget revenues.
In 2021, the amount of the LDMF paid by the mining companies is 49.851 billion FCFA. This amount has been distributed to the local authorities.
The tax collected in 2021 will be 5.016 billion FCFA, compared with 4,377,598,938 FCFA in 2020, an increase of 14.60%. This amount is paid directly into the municipal budgets.
The chairman of the EITI-BF steering committee, Nicolas Kobiane, said that the process of drawing up this report was inclusive, because the data was collected from government bodies (ministries of mines, the economy and the environment) on the one hand, and from mining companies on the other. He points out that 2 types of data were collected: contextual data and financial data. The 13th EITI-BF report will be translated into local languages, including Mooré, Dioula, Gulmancema, Bissa, Lyélé and Dagara, in order to make its content more accessible.
The report will be widely circulated on the EITI-BF website. Public conferences will be held in mining areas to ensure that the report is properly understood.
Tiba Kassamse OUEDRAOGO
#Mines_Actu_Burkina
