Insights into mining climate in Burkina Faso and Côte d’Ivoire
Conducting mining and exploration activities in Burkina Faso and Côte d’Ivoire are not without challenges, but both countries hold “great potential” for determined exploration and mining companies, mineral exploration company Predictive Discovery (PD) MD Paul Roberts tells Mining Weekly.
PD has been undertaking exploration work in Burkina Faso since 2010 and in Côte d’Ivoire since 2013. In Burkina Faso, PD holds rights to explore 12 granted exploration permits covering 1 533 m2; in Côte d’Ivoire it holds four exploration permits also covering 1 533 m2, which are managed in a joint venture (JV) partnership with gold exploration and development company Toro Gold.
Roberts says operating in Burkina Faso has never been difficult, as “ . . . the only major issues that PD had in the early days were the lack of availability of drill rigs . . . and having backlogs in the assay facilities”.
The company has not had any significant challenges in terms of receiving exploration permits
.
Burkina Faso is also less of a frontier destination, with seven mines now operating in the country.
In the past ten years, there has been a strong resurgence in exploration and mine development, stimulated particularly by the new mining regulations in 2003.
The Taparko, Mana Inata, Essakane, Bissa, Youga and Karma gold mines are currently in production and the Yaramoko mine is under construction.
Of these, the largest known deposits are at Mana and Essakane. In addition, exploration results announced by mining and exploration companies Semafo (Natougou and Nabanga prospects), Centamin (Batie West prospect), Gryphon Minerals (Banfora prospect), MNG Gold (Netiana prospect), B2Gold (Kiaka prospect), and Orezone Gold Corporation (Bombore prospect) suggest that more gold mines will be developed.
Roberts points out that some of these prospects have gold grades “well above” the West African average, and
similar to other West African countries, government has the right to take a free- carried interest of 10%.
Gold mining royalties range from 3% to 5%, depending on the gold price. The rate of corporate tax for new mine developments is 27.5%. Companies with existing agreements with the State pay a company tax rate of 17.5%.
Burkina Faso is also currently the fourth- largest producer of gold in Africa and gold is the country’s largest export commodity.
Côte d’Ivoire Prospects
Roberts highlights that there was some instability in Côte d’Ivoire when former President Laurent Gbagbo lost the 2010 national elections and refused to vacate office, but since President Alassane Ouattara came to power in 2011, government has been “very supportive” of the mining industry.
The country adopted a new Mining Code in March 2014 and PD views it as investor-friendly legislation, saying that it benchmarks well with other mining codes in effect in West Africa.
Roberts points out that the activity of mining companies is increasing in Côte d’Ivoire, which hosts just more than one-third of the Birimian Greenstone Belts – the geological sequence that hosts world-class gold deposits.
“Although there are a few gold mines currently in operation in the country . . . there are great opportunities for gold miners in Côte d’Ivoire,” he concludes.
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