Interview: Burkina Faso's transitional government to review mine permits

Renegade Gold

27/11/2014 13:11

* Burkina latest in a series of African countries to review 
deals 
    * New Burkina govt to revise mining code 
    * Discussing possible compensation to projects looted last 
month 
 
 (Adds mines ministry clarification that review will focus on 
exploration permits) 
    By Mathieu Bonkoungou 
    OUAGADOUGOU, Nov 26 (Reuters) - Burkina Faso's transitional 
government will review some mine contracts signed under former 
President Blaise Compaore, responding to concerns that 
exploration permits were granted in opaque conditions, new mines 
minister Colonel Boubacar Ba said. 
    Gold is the West African nation's top commodity and the 
country exported 32 tonnes in 2013. It had been expecting to 
increase output this year with new projects from developers 
TrueGold  TGM.V , Gryphon  GRY.AX  and Roxgold  ROG.V . 
    The interim government's decision follows similar reviews 
carried out by other African countries over the past decade -- 
most notably in Democratic Republic of Congo and Guinea. 
    Both countries conducted reviews aimed at cancelling or 
improving mining deals deemed unfavourable to state interests. 
Other mineral-rich African countries, frustrated with lack of 
progress, have cracked down on unused concessions. 
    "It's a sector that has not always been transparent. I can 
assure you that concerning permits, we will revisit the 
contracts," said Ba, a member of a cabinet appointed on Sunday. 
    "I have heard that there are people who have, on their own, 
50 to 60 permits that they are not exploiting. Often they resell 
them. We will put an end to that," he said on Wednesday. 
    A top civil servant at the country's mines ministry 
clarified on Thursday that the revision would focus on 
exploration permits -- the initial stage in any mine project. He 
said companies already in production would not be affected. 
    "It has to do with research permits only, and not those 
which are in operation," said Emmanuel Nonyarma, 
Secretary-General of Burkina Faso's mines ministry. 
    Compaore stepped down as president and fled the country last 
month in the face of a popular uprising after 27 years in power. 
    One of six army officers named to the transitional 
government, Ba said he would push ahead with existing plans to 
revise the mining code in order to encourage investment, at a 
time when miners are cutting back.  
    "We're hearing that many mining companies are moving to 
neighbouring countries and that will have a negative impact on 
our economy," Ba said.  
    Gold leapfrogged cotton to become the landlocked country's 
main export in 2009. Gold prices have since tumbled, however, 
falling to fresh 4-1/2 year lows this month.  
    Hundreds of thousands of Burkinabes took to the streets in 
October to protest Compaore's plan to extend his rule. Amid days 
of unrest that ended with his removal from power, a number of 
mining projects were looted. 
    Ba said the government had met firms to discuss damages. 
    Other Burkina gold miners include Amara Mining  AMARA.L  and 
Canada's Endeavour Mining  EDV.TO . Pan African Minerals is also 
seeking to start production at its 100 million tonne magnesium 
mine at Tambao, in the country's northeast, in 2015. 
 
 (Reporting by Mathieu Bonkoungou; Writing by Joe Bavier; 
Editing by Matthew Mpoke Bigg and Clara Ferreira Marques) 
 ((joe.bavier@thomsonreuters.com; +225 07074101; Reuters 
Messaging: joe.bavier.thomsonreuters.com@reuters.net)) 
 
Keywords: BURKINA MINING/