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Burkina Faso’s New Government Planning Review of Mining Contracts
Nov. 27, 2014 09:26AM PST
Precious MetalsReuters reported that the transitional government in Burkina Faso plans to review mining contracts signed by the former president. The move comes in response to concerns that “some were agreed in opaque conditions.”
Reuters reported that the transitional government in Burkina Faso plans to review mining contracts signed by the former president. The move comes in response to concerns that “some were agreed in opaque conditions.”
The review could impact gold companies operating in the country, including Roxgold Inc. (TSXV:ROG) and TrueGold Mining Inc. (TSXV:TGM).
As quoted in the market news:
The interim government’s decision follows similar reviews carried out by other African countries over the past decade after civil war or regime change — most notably in Democratic Republic of Congo and Guinea.
Both 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 also 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,’ [new mines minister Colonel Boubacar Ba], a member of a cabinet appointed on Sunday, told Reuters in an interview.
‘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.
