Burkina Faso grants mining lease to Russia’s Nordgold for gold project

 According to the military-led West African government, Burkina Faso has awarded Russian miner Nordgold an industrial mining licence for a gold project. The goal is to capitalise on record-high gold prices to boost an insecure economy.

The move signals deepening economic ties between Russia and Burkina Faso, as the junta that seized power in 2022 continues its pivot away from traditional Western allies towards Moscow.

The Niou gold deposit, located in the Kourweogo province of Burkina's Plateau-Central region, covers 52.8 square kilometres (20.4 square miles) within the exploration licence area held by Jilbey Burkina, which is now owned by Nordgold. Nordgold already operates the Bissa and Bouly mines.

The council of ministers said late Thursday that the Niou mine is expected to produce around 20.22 metric tons of gold over its eight-year life.

By the country's new mining legislation, Jilbey Burkina will keep an 85% interest in the project, while the Burkinabe government will hold the remaining 15% without making any financial contributions.

The council of ministers stated that the project will contribute 51.5 billion CFA francs ($89 million) to the state's budget over its lifetime, as well as 7.06 billion CFA francs to the state's mineral wealth fund.

Gold prices have climbed by more than 25% this year, fueled by geopolitical uncertainty and US President Donald Trump's trade policies.