Burkina Faso
Legislation
- Mining Code 2015
- Decree on the Management of Mining Titles and Authorisations 2017
- Environment Code 2003
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Serve | Subscribe |
| Application Criteria | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
Though Burkina Faso is experiencing a period of political instability following two coups in 2022, mining operations in the country appear to be continuing without considerable impact. Where mineral rights have been withdrawn or cancelled, this appears to have occurred within the provisions of the legal framework, providing a positive indication that the law is still being effectively implemented. In 2023 amendments to the legal framework were also made - with a focus on royalty rates and adjustments were also made to local content requirements. The process of amending the legal framework, rather than acting outside its terms, is also seen as a positive indication from a legal risk perspective, though the content of the amendments will likely have commercial and financial implications for operators as the government seeks to increase the social and economic benefits of mining.
Contents
Legislation
- Mining Code 2015
- Decree on the Management of Mining Titles and Authorisations 2017
- Environment Code 2003
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
Burkina Faso is recognised as the fourth largest gold producer in Africa. In addition to gold, the country is also known to produce zinc, copper, cement, dolomite, granite, marble, phosphates, pumice, manganese and limestone. The country’s mining industry has expanded considerably over the last 20 years – both at an industrial level and at the artisanal level. Industrial growth has been attributed to focused efforts to improve the sector for the purposes of attracting foreign investment. The privatisation of State-owned enterprises began in the late 1990s; in 2003 and 2004 the country’s Mining Code and Investment Code were reformed with a focus on attracting greater FDI – particularly in gold exploration. A successful period of development of numerous mines ensued, with the international investment community noting a lack of undue government interference during this time, which further contributed to positive perceptions of the country as a mining destination. As with many African jurisdictions, more legal reform was undertaken in 2015 with a focus on increasing government benefits from the industry. Though such reform may have resulted in a slightly less attractive framework for investment, the 2015 Mining Code still strikes a reasonable balance between investor and country and has ensured that the country’s mining industry remains a strong option for exploration and mining companies. The economic reliance on gold means Burkina Faso’s economy is heavily influenced by shifts in commodity prices and royalty rates were adjusted in 2023 to increase rates where the gold price is high. Other challenges include the impact of political instability, insufficient energy supplies and inadequate transportation.
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