Burkina requisitions 200 kg of gold from a Canadian mine for “public necessity”

The law of the country provides for requisitions on grounds of public necessity subject to compensation.

Burkina Faso has requisitioned 200 kilograms of gold produced by a subsidiary of the Canadian group Endeavor Mining, for “public necessity”, a decision dictated by “an exceptional context”, according to the transitional government of this country which faces a serious security crisis.

On Tuesday, a decree signed by the Minister of Mines, Simon-Pierre Boussim, announced the requisition of gold produced by the gold mining company Semafo Burkina Faso. This decree stipulates that in accordance with article 16 of the mining code, 200 kilograms of gold produced at the Mana mine (west) are requisitioned today for public necessity.

The text indicates that the mining company will receive compensation corresponding to the value of the gold thus requisitioned, without further details.

Wednesday evening, the government wanted to reassure investors and all other partners in Burkina Faso.

The requisition decision is dictated by an exceptional context of public necessity which founds the State to ask certain mining companies to sell part of their gold production to it, continues a press release from government spokesperson Jean -Emmanuel Ouedraogo.

For several years, Burkina Faso has been engaged in a fight against jihadist groups linked to the Islamic State and Al-Qaeda, whose bloody attacks have intensified in recent weeks.

The government press release specifies that this exceptional and temporary transaction is carried out under the conditions of the purchase of gold on the international market.

According to the Burkinabé mining code, mining or quarry installations and the substances extracted may be neither requisitioned nor expropriated by the State except for reasons of public necessity and subject to fair and reasonable compensation. prior compensation set by agreement between the parties or by an arbitral or common law tribunal.

In operation since March 2008, the Mana gold mine, one of the largest of the dozen in Burkina Faso, produced in 2022 6 .04 tons of gold, according to official figures.

It is owned by Endeavor Mining which merged in 2020 with the Canadian Semafo to form one of the largest gold producers in West Africa. the West.