Construction of LSE-listed gold miner Nordgold’s Bouly gold project, about 90 km north of Ouagadougou, in Burkina Faso, continues on schedule and within budget, with production expected to start in the second half of 2016, Nordgold development projects director Igor Klimanov tells Mining Weekly.

Klimanov states that the Bouly mine will add about 120 000 oz to production over its ten-year life-of-mine at an all-in sustaining cost of $730/oz, adding that construction of the mine started in the second quarter of 2015 and that Nordgold invested $57.7-million in construction in the second and third quarters of 2015.

Planned construction capital expenditure at Bouly is about $85-million for the full year of 2015 and about $70-million for 2016, he adds.

Nordgold currently operates its Taparko and flagship Bissa gold mines, in Burkina Faso. The Bouly project contains a large low-grade gold mineralisation “favourable” for heap-leach treatment and is about 5 km from the Bissa mine.

Klimanov says Bouly will be an openpit, conventional drill, blast, load and haul operation. The mine will use similar mining equipment to that of Bissa, including a fleet of 100 t trucks to optimise maintenance cost.

Bouly will have its own heap-leach facilities and final processing stages, including desorption, with electrowinning and smelting taking place at Bissa’s processing plant.

“The proximity of . . . Bissa . . . to Bouly enables us to benefit from economies of scale, expert knowledge of the local geology, a well-trained workforce and shared expertise from Bissa’s experienced management team,” Klimanov says.

He notes that Nordgold’s own mining and processing of the Bouly ores will enable the company to retain significant value for its shareholders.

Community Development

Klimanov says the Bouly project created about 600 jobs during the construction phase and 350 permanent jobs will be created over ten years during the operation of the mine.

“As part of our resettlement action plan, we will improve the living conditions of the local community by constructing good-quality housing and socioeconomic infrastructure such as wells, schools, churches and mosques, community centres and multifunctional mills.”

Klimanov says Nordgold will also implement a livelihood restoration programme – which will include strengthening the capacity of individuals or groups in the agriculture, livestock or other sectors – for the affected communities.

There will also be training for new income-generating activities such as driving vehicles, welding, masonry, weaving, soap making and the provision of inputs and products, as well as small materials and equipment.

He comments that, as part of its social responsibility towards the affected communities, Nordgold will also invest in community development initiatives in education, training, the improvement of health infrastructure, the supply of equipment and economic development, such as assisting in developing small enterprises and allocating microcredit.

“It is also worth noting that the Bouly project benefits from an exceptional level of cooperation from the local community, as everyone understands that the launch of the mine will create more jobs, tax revenues and social investment,” Klimanov concludes.