Burkina Faso’s junta-led government recently initiated the construction of its inaugural gold refinery, aiming to refine the country’s primary mineral resource on-site. With a daily capacity of approximately 400 kilograms (880 pounds) of gold, the refinery is anticipated to generate 100 direct jobs and 5,000 indirect employment opportunities, as announced by Ismael Siby, CEO of Marena Gold.
The decision to establish the refinery aims to end the practice of sending gold abroad for refinement, enabling better oversight of the gold’s authenticity, emphasized by Burkina Faso’s military leader, Captain Ibrahim Traore. Traore highlighted the importance of controlling the nation’s leading export product, especially considering the significant percentage of state revenue derived from the mining sector.
In a related development, Reuters has reported that, Mali also announced plans to construct its largest gold refinery in Bamako, as part of a non-binding agreement with Russia. This initiative aligns with Mali’s efforts to exert greater control over gold production and ensure proper taxation, confirmed by Alousséni Sanou, a minister in Mali’s military government.
In terms of gold production, South Africa continues to maintain its lead as Africa’s foremost gold producer, followed by Ghana, Burkina Faso, Tanzania, and Sudan. However, the recent moves by Burkina Faso and Mali to build their refineries signal a potential shift in the dynamics of gold processing on the continent.
The establishment of these refineries prompts industry watchers to consider the potential benefits of collaboration and synergies among these West African nations. While each country endeavors to develop its refining capacity, exploring possibilities for cooperative ventures might streamline resources, share expertise, and optimize the overall efficiency and standards of gold refining operations in the region.
Additionally, there are inquiries regarding the adherence to London Bullion Market Association (LBMA) standards in the operation of these new refineries. Adhering to these internationally recognized standards is crucial for ensuring the quality and credibility of refined gold, guaranteeing it meets global market specifications.
The initiatives in Burkina Faso and Mali parallel similar efforts in other African countries like Ghana and Rwanda, which have already established their own gold refineries. These initiatives signify a proactive stance against the “resource curse” that has affected many resource-rich African nations. By adding value to raw materials domestically, these countries aim to retain more economic benefits within their borders, moving away from the export of raw minerals.
As these refining ventures unfold, the question remains: Why won’t these nations collaborate to harness synergies in building subregional refineries, and collectively ensure adherence to international standards, and pave the way for sustainable, locally driven economic growth? The strategic development of gold refining facilities in these countries opens opportunities for collaboration instead, which has the propensity to setting the stage for a potential transformation in Africa’s gold mining and refining landscape; but would there be enough gold to feed all these refineries?
Africa Mining Hall of Fame : AMHOF
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