The Gold Market in Burkina Faso: What You Need to Know

Gold Market in Burkina Faso: Burkina Faso, a landlocked nation in West Africa, has emerged as a significant player in the global gold market over the past two decades.

Once primarily known for its agricultural economy, the country now ranks as Africa’s fourth-largest gold producer, with the sector driving substantial economic growth amid political and security challenges.

Gold mining contributes around 15% to Burkina Faso’s GDP and accounts for over 70% of its export earnings, making it a cornerstone of the national economy.  In 2025, gold production surged to 70.43 tons by September, a 58% increase year-on-year, highlighting the sector’s dynamism. 

This guide explores the history, current landscape, key players, economic impacts, challenges, regulations, and future prospects of Burkina Faso’s gold market, providing a comprehensive guide for investors, researchers, and stakeholders.

The gold rush in Burkina Faso is not just about wealth extraction; it’s intertwined with the country’s socio-political fabric. From artisanal miners digging by hand to multinational corporations operating massive open-pit mines, the industry employs hundreds of thousands and influences everything from government revenues to environmental health.

As we delve deeper, it’s clear that while gold offers promise, it also brings perils, including environmental degradation and security risks from jihadist insurgencies. Understanding this market requires balancing its opportunities with its complexities.

Historical Background 

Gold mining in Burkina Faso has ancient roots, but its modern history began in earnest during the 1980s. Artisanal gold mining, known locally as orpaillage, predates colonization, with evidence of precolonial extraction and trade in the west and southwest regions.

  However, the contemporary boom was triggered by severe droughts in the 1970s and 1980s, which devastated agriculture in the Sahel and Savanna zones. Farmers, facing famine and economic hardship, turned to gold panning as a survival strategy.

This shift marked the beginning of a “gold rush” that saw migrants from rural areas flock to mining sites, particularly in the northern and northeastern provinces like Gnagna, Seno, and Soum.

By the mid-1980s, informal, non-industrial mining became a last resort for many, with production estimates in the early days reaching several tons annually through rudimentary methods.

The government initially had little involvement, but as the sector grew, it began formalizing operations. In 1938, during colonial rule, the first industrial mine opened at Poura, but it was short-lived and closed in the 1990s due to inefficiencies. 

The real transformation came in the 2000s, fueled by rising global gold prices and favorable mining codes that attracted foreign investment.

Since 2007, industrial mining has exploded, with 15 large-scale mines opening by 2019.  Production jumped from negligible amounts in the early 2000s to 23 tons in 2010 and 32 tons in 2011. 

This growth was driven by discoveries in the West African Craton, a geological formation rich in gold deposits shared with neighbors like Ghana and Mali.  By 2012, Burkina Faso had become Africa’s fourth-largest gold producer, with hundreds of artisanal sites complementing industrial operations.

Political changes have also shaped the industry. Two coups in 2022—first overthrowing President Roch Kaboré in January, followed by Captain Ibrahim Traoré’s seizure in September—ushered in a era of resource nationalism. 

These events led to mining code revisions, increased state control, and nationalizations, aiming to redirect revenues toward national development amid ongoing insurgencies.

The history reflects a transition from subsistence mining to a strategic economic pillar, but not without social and environmental costs.

Current State of the Gold Market in Burkina Faso

As of 2026, Burkina Faso’s gold market is thriving, with production continuing its upward trajectory from 2025’s record highs. In 2025, total output reached approximately 93 tons (extrapolating from 70.43 tons by September), surpassing 61 tons in 2024 and 57 tons in 2023. 

This surge was primarily driven by artisanal mining, which produced 29.56 tons in the first nine months of 2025, up from 5.57 tons in the same period of 2024, while industrial output remained stable at around 40.87 tons.

The market is bifurcated between industrial and artisanal sectors. Industrial mining, dominated by 17 large-scale operations, focuses on high-volume extraction using advanced technology.

Key mines include Essakane (producing 430,000 ounces annually), Houndé, Sanbrado, Mana, and the newly nationalized Boungou and Wahgnion.  Artisanal and small-scale mining (ASGM), meanwhile, operates across over 440 sites, employing more than 430,000 people and producing up to 50 tons annually in recent years.

Gold prices, surging 27% in 2025 due to global instability, have bolstered revenues.  However, security issues persist, with jihadist attacks forcing temporary closures and increasing operational costs.

Despite this, restarts of suspended mines contributed to a 4% rise in industrial production to 55.7 tons in 2025.  The state-owned Société de Participation Minière du Burkina (SOPAMIB) now manages nationalized assets, signaling a shift toward greater government involvement.

In 2026, production is projected to reach 65-70 tons, supported by expansions like Orezone’s Bomboré plant, aiming for 185,000 ounces.  The market’s resilience is evident, but vulnerabilities to price fluctuations and external shocks remain.

Major Players and Companies

The gold market in Burkina Faso is led by a mix of international firms and the growing state presence. IAMGOLD Corporation operates the Essakane mine, the country’s largest, producing over 430,000 ounces annually and contributing more than 10% to GDP by 2026.  IAMGOLD plans $165 million in investments for 2026 to sustain output at 400,000-440,000 ounces.

Endeavour Mining, before nationalizations, controlled Houndé and Wahgnion, but the latter was transferred to SOPAMIB in 2025 along with Boungou.  Fortuna Silver Mines runs the Mana mine, while Orezone Gold Corporation’s Bomboré achieved first gold from its $80 million expansion in late 2025, targeting 185,000 ounces in 2026.

West African Resources operates Sanbrado and is developing Kiaka, with a ten-year outlook of 4.8 million ounces.  Nordgold manages Taparko and Bissa, though assets may shift amid talks with Russia’s Okto Group.  The government’s SOPAMIB now holds key assets, including exploration licenses from Lilium and Gryphon, emphasizing national control.

These players navigate a landscape of opportunity and risk, with foreign firms providing technology and capital while the state seeks greater equity.

Economic Impact

Gold mining is pivotal to Burkina Faso’s economy, generating 16% of GDP and 22% of government revenues in 2023, with projections for sustained growth in 2026.  In 2025, the sector bolstered GDP growth to 4.7%, with mining contributing 1 percentage point. 

Exports, primarily gold, reached $3.5 billion in 2020, rising with prices to provide foreign currency amid a current account deficit.

Employment is a major benefit: Industrial mining supports 51,000 jobs, while ASGM employs 1-1.3 million, surpassing agriculture in some estimates.  This has reduced extreme poverty, with rates projected to fall to 34.2% in 2025.  Government revenues from royalties and taxes hit $544 million in 2021, funding infrastructure and social programs.

However, dependency on gold exposes the economy to volatility. Price drops could slash revenues, as seen in past fluctuations.  Nationalizations aim to capture more value, with SOPAMIB collecting over 11 tons in early 2025.  Overall, gold drives diversification from agriculture but heightens vulnerability to global markets and internal instability.

Economic Indicator	2023	2025	2026 Projection
Gold Production (tons)	57	93	65-70
Contribution to GDP (%)	16	15	15+
Employment (ASGM)	430,000+	430,000+	Stable
Government Revenues (USD mn)	544 (2021 ref)	Increased	Rising with prices

Artisanal and Small-Scale Mining

ASGM is the backbone of Burkina Faso’s gold sector, present in every region and often outpacing industrial output. Over 430,000 people work at 440+ sites, with 90% lacking formal education.  Annual production hovers at 50 tons, worth $1-2 billion informally.

It provides livelihoods in rural areas, absorbing youth unemployment and offering alternatives to migration.  However, challenges abound: Mercury use for extraction causes health issues, with miners often unaware of risks.  Regulations hinder formalization, and child labor persists, with children as young as six working sites.

The planetGOLD project, completed in 2025, promoted mercury-free technologies, formalization, and market access via revolving funds and training.  Government efforts to formalize ASGM, including through SOPAMIB, aim to integrate it into the economy, reducing smuggling and boosting revenues.

Environmental and Social Challenges

Gold mining’s environmental toll is severe. Industrial operations cause deforestation, soil erosion, and water pollution from chemicals like cyanide.  In Essakane, air pollution and dust contribute to respiratory issues. 

ASGM exacerbates this with mercury contamination, costing $24.2 million annually in health impacts.  Studies show degraded biodiversity and contaminated groundwater near sites.

Socially, mining sparks conflicts over land rights, with locals losing farmland without adequate compensation.  Increased banditry, prostitution, and alcoholism plague communities.  Security threats from insurgents have led to attacks, closures, and over 70 deaths in 2024.  Health problems include malaria spikes and mental health issues.  Despite infrastructure investments, many residents report declining quality of life.

Government Regulations and Policies

Burkina Faso’s mining code, revised in 2023-2024, increases royalties to 6-7%, state equity to 15-20%, and local content requirements.  Nationalizations via SOPAMIB, including five assets in 2025, aim to boost state revenues.  Incentives like tax breaks attract investment, but reforms have concerned foreign firms.  Policies focus on formalizing ASGM and curbing smuggling.

Future Prospects

Looking to 2026 and beyond, gold mining prospects are optimistic, with GDP growth at 4.9-5.1% driven by expansions.  New projects like Kiaka and Bomboré, plus untapped minerals (lithium, cobalt), offer diversification.  Investments from IAMGOLD and others signal confidence, but risks from security, climate shocks, and policy instability loom.  Sustainable practices and regional cooperation could unlock further potential.

Conclusion

Burkina Faso’s gold market is a vital engine of growth, blending opportunity with challenges. As production rises and the state asserts control, balancing economic gains with environmental and social sustainability will define its future.