Burkina Faso Deepens Economic Ties with Russia via Nordgold's Gold Project

Burkina Faso has awarded an industrial mining licence to Russian company Nordgold for the Niou gold deposit, aiming to boost its economy amidst high gold prices. The move signifies stronger economic bonds with Russia. The project, which may impact local artisanal miners, promises significant economic contributions to the state.

The West African nation of Burkina Faso has granted a Russian company, Nordgold, an industrial mining license for a substantial gold project, the Niou deposit, indicating a shift towards fortifying economic ties with Russia amidst record-high gold prices. This decision marks a notable departure from Burkina Faso's traditional Western alliances.

Located in the Kourweogo province, the Niou deposit spans over 52.8 square kilometres and is expected to produce approximately 20.22 metric tons of gold over eight years. Holding an 85% stake, Jilbey Burkina, owned by Nordgold, will operate the site, contributing significantly to the national budget under the oversight of Burkina's government.

While the project is poised to generate over $89 million for the state budget, experts warn it could displace artisanal miners who rely on the land for their livelihoods. The mine could, however, indirectly sustain jobs at Nordgold's existing operations in the region, as geopolitical tensions continue to drive up gold prices globally.

(With inputs from agencies.)