The Council of Ministers of 16 March 2023 adopted a decree renouncing the industrial exploitation permit for a large gold mine of the company Konkera SA in the commune of Batié, Noumbiel province, South-West region.
The Konkera SA large-scale gold mining permit covers an area of 64.34 km2 and was granted for a period of 20 years.
Since the granting of the industrial exploitation permit to the company in 2015 until now, the construction works of the said mine have never started due to the economic situation of the gold market and the security situation.
After six years of exemption from starting construction work on the mine and following various formal notices, Konkera SA decided to renounce its operating permit, in accordance with the provisions of Law No. 036-2015/CNT of 26 June 2015 on the Mining Code of Burkina Faso. Indeed, Konkera’s application for renunciation was examined by the National Mining Commission before the file was transmitted to the Council of Ministers. As soon as the renunciation decree is signed, any other company wishing to take over the licence can apply.
Already, it has been learned that at least two companies are interested in the Konkera permit. According to our information, these are a South African and a Canadian company.
What does Law 036 on the 2015 mining code say | Mines Actu Burkina about renunciation?
- Article 110: Renunciation of part or all of the area of a mining title as well as the mining title itself is permitted at any time without penalty or compensation. However, it must be accepted by the Mining Administration under the conditions set out in the mining regulations. Acceptance by the Mining Administration occurs after payment of the sums effectively due and payable according to the period expired up to the date of relinquishment and on completion of the work prescribed by the mining regulations relating to the rehabilitation of sites for the abandoned area.
- Article 111: Any claim or demand of the State, following the relinquishment of the holder, shall be filed within one year from the date of relinquishment. After acceptance, the rights and obligations of the holder shall be adjusted according to the relinquished area when the relinquishment covers only part of the permit area. The area which the holder renounces partially or totally is released from all rights and obligations for the future, as of zero hour on the day following the date of the decision of the Mining Administration. The legal effects of the total renunciation cover the entire area from the same date.
- Article 117: In cases of renunciation and withdrawal, if the holder wishes to sell its operating material and equipment which it owns, the State has a right of pre-emption. Buildings, outbuildings, shafts, galleries and in general any work installed in perpetuity for exploitation shall be transferred to the State as of right and free of charge and after rehabilitation of the exploited sites, under the conditions provided for in the environmental and social management plan.
