Burkina Faso has granted an industrial mining license to Russian mining giant Nordgold for the Niou gold project, a move aimed at boosting the country’s economy amid rising global gold prices. The announcement was made by the military-led government, which is seeking to capitalize on the soaring price of gold to stabilize an economy struggling with insecurity.
The Niou deposit, located in the Plateau-Central region, covers 52.8 square kilometers. It sits within an area previously held by Jilbey Burkina, now owned by Nordgold, which already operates two other mines in the region, Bissa and Bouly. The Niou mine is expected to yield 20.22 metric tons of gold over its projected eight-year lifespan.
The Burkinabe government will hold a 15% stake in the project, with Jilbey Burkina maintaining an 85% share, in line with new mining regulations. The project is anticipated to contribute 51.5 billion CFA francs ($89 million) to the state budget, along with 7.06 billion CFA francs to the national mineral wealth fund.
Despite the economic prospects, the project could impact local artisanal miners, as the Niou site lies in a significant artisanal mining area. However, the government expects the mine to generate 204 jobs, further supporting the local economy through its connection to the nearby Bissa Gold SA mine.
This partnership reflects the growing economic ties between Burkina Faso and Russia, marking a shift away from traditional Western allies since the military junta’s rise to power in 2022.