Burkina Faso has purchased 200 kilograms of gold from Canadian miner Endeavor, according to the country’s energy and mines ministry on Tuesday.
The ministry stated in a statement that the decision to purchase gold from the Mana mine was made in the public interest and that the company would be fully compensated.
“The decision to requisition gold is dictated by an exceptional context of public necessity, which requires the state to ask certain mining companies to sell part of their gold production,” said a statement by government spokesman Jean-Emmanuel Ouedraogo.
Gold is a universal means of acquiring foreign currency in order to replenish reserves.
Burkina Faso’s finances have been severely harmed by sanctions imposed in response to two army takeovers last year, as well as the fight against a militant insurgency in the country’s north and east.
Endeavor, based in the United Kingdom, is the largest gold miner in the Sahel region.
Burkinabe authorities stated that the transaction was exceptional and temporary, and that it was carried out in accordance with gold trade regulations.
The government wished to “reassure investors and all other Burkina Faso partners” on Wednesday evening.
According to official figures, the Mana gold mine, which has been in operation since March 2008, produced 6.04 tons of gold in 2022.
Endeavor Mining owns it, and it merged with Canada’s Semafo in 2020 to form one of West Africa’s largest gold producers.