BURKINABE GOVERNMENT BUYS 200 KILOS OF GOLD FROM LOCAL MINE

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As announced on Tuesday, the government of Burkina Faso has acquired 200 kilos of gold from Canadian miner, Endeavor.

 

The Ministry of Energy and Mines made the announcement in a statement that revealed that the decision to purchase gold produced from the country’s local mine was to the public’s benefit, as the company will be compensated fully for its value.

 

Jean-Emmanuel Ouedraogo, the government spokesman said “the decision to requisition gold is dictated by an exceptional context of public necessity, which requires the state to ask certain mining companies to sell part of their production”.

 

The mining company, Endeavor is the biggest gold miner in Burkina Faso with its headquarters in the Uk. the company is funding combat against a rampant jihadist insurgency that prompted two military coups in 2021.

 

Gold is seen as a worldwide means of buying foreign currency to shore up reserves.

 

The Burkinabe authorities in charge said the transaction was exceptional and temporary noting that the transaction was done in compliance with regulations governing gold trading.

 

The government wished to “reassure investors and all other partners of Burkina Faso”.

 

Since operations began in 2008, the Mana gold mine produced 6.04 tons of gold in 2022. It is currently owned by Endeavour mining, which it acquired in 2020 as part of its acquisition of Canada-based gold miner Semafo to form one of the largest gold producers in West Africa.

 

According to Endeavor’s website, the company owns 90% and Burkina Faso’s government owns the rest shares.

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