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Burkina Faso is a state in West Africa located inland of the continent without access to the sea. According to the World Bank classification, the country belongs to the category of developing with a low level of income. Mining in Burkina Faso is one of the main industries, accounting for about 20% of the country's GDP.

The country is characterized by an unstable political situation and a high crime rate. Despite all the negative factors, gold mining in Burkina Faso is developing rapidly.

Key regulators

The government agencies that govern mining legislation are the ministry in charge of mining and the courts. These authorities must be contacted if you intend to open a mining business in Burkina Faso for a license.

Obtaining a license for the use of subsoil in Burkina Faso

Over the past few years, Burkina Faso has developed into one of the largest gold mining countries in the West African region and the continent as a whole. The extraction of minerals is also rapidly developing here. Active geological exploration is underway in the country. Canadian and Australian companies are especially active in this direction.

Production of minerals in Burkina Faso must be authorized according to the type of work. 

Required separate permissions for:

  1. Research work.
  2. Maintenance work (can be industrial or semi-mechanized).
  3. Handicraft operation.
  4. Quarry research and development of minerals.

Oil and gas production in Burkina Faso

There is no legal framework for oil and gas production in the country. Therefore, any investor who might be interested in this sector negotiates with the highest authorities about the rights to carry out this activity.

Foreigners are not limited in terms of owning shares in mining projects. Obtaining a permit for the exploitation of minerals in Burkina Faso means that the company guarantees the state 10% free participation in the share capital of companies operating industrial facilities.

The permit grants its owner the following rights:

  • for the development of deposits in accordance with the legislation on mineral resources;
  • own, transport mined minerals to storage or processing sites;
  • sell domestically and abroad at prices set by free markets and export mined minerals and products of their processing;
  • to equip production for processing, refining of minerals.

To transfer mining rights in Burkina Faso, it is necessary to obtain permission from the Minister of Mines. There are no restrictions on the disposal of controlling stakes in companies holding production rights.

Environmental issues

Mining in Africa must be carried out in a way that preserves the environment, manages and restores exploitable sites.

Mineral rights holders in Burkina Faso must:

  • obtain an opinion from the ministry responsible for the environment;
  • develop and approve in the relevant ministry a program for environmental protection, including a plan for the rehabilitation of the operated site;
  • make a deposit to a trust fund that will be used to cover the costs of implementing the above program.

NOTE: The operation of radioactive minerals, as well as the use of radioactive sources, must be subject to radiation control.

IQ Decision UK legal professionals are monitoring the mining regulation in Burkina Faso and other African countries on a regular basis. Consulting a mining expert in Africa can help you get in-depth information on these issues. To sign up for a consultation with our experts, please fill out the feedback form below.