Fortuna Mining has confirmed that the government of Burkina Faso does not plan to revoke its existing mining permits, calming investor concerns following remarks by Burkina Faso’s junta leader, Ibrahim Traoré, over the weekend.
In a speech on Saturday commemorating two years of his leadership, Traoré stated that the country aimed to revoke certain foreign mining permits in an effort to increase its own gold production. However, he did not provide specifics on which permits were under threat. The uncertainty caused a sharp decline in the shares of gold miners with projects in the West African nation.
Despite the confusion, Fortuna Mining, a Canadian-based firm, reassured stakeholders on Monday that its permits remain secure. Shares of the company were down 9 percent in trading on the Toronto Stock Exchange by 19:25 GMT, reflecting investor anxiety following Traoré’s comments.
Orezone Gold Corp, which owns the Bomboré gold mine in Burkina Faso, also saw its stock fall by 9 percent, while shares of Endeavour Mining, another prominent gold mining firm operating in the country, dropped by 3 percent. Endeavour issued a statement confirming its ongoing cooperation with the Burkinabe government, noting that it was unaware of any plans to revoke its permits.
Traoré’s remarks underscore the government’s intention to take greater control over the country’s gold resources, a move likely driven by economic challenges and a desire to retain more wealth within the country. However, Burkina Faso’s mining sector remains highly reliant on foreign investment and expertise, making any sudden changes to permit structures potentially destabilising.
Endeavour Mining, which operates multiple mines in the region, commented that while the president had referred to mining licences in his speech, no direct threats had been made to the company’s operations. The firm said it continues to work closely with the government and looks forward to further collaboration.
This recent development comes at a time of broader economic uncertainty, with global gold prices fluctuating and the mining industry facing both regulatory and operational challenges in various regions.
In response to the situation, Fortuna Mining and other firms operating in Burkina Faso are monitoring the government’s next steps closely, though for now, the Burkinabe administration appears supportive of ongoing foreign mining operations.
Burkina Faso remains one of West Africa’s top gold producers, and international investment plays a crucial role in the country’s economy. As such, clarity around the government’s intentions will be essential in maintaining stability and confidence in the mining sector.
