Burkina Faso has officially opened its first gold refinery, marking a significant milestone in its efforts to enhance economic independence. The West African nation, which is the continent's third-largest gold producer, churned out over 94 tonnes of gold last year. The refinery, known as the National Gold Refinery of Burkina Faso (RAFFINOR-BF), was inaugurated in the capital Ouagadougou by Captain Ibrahim Traore, who seized power in a 2022 coup.
The gold refinery, which has an annual production capacity of 164 tonnes of gold, is expected to increase its capacity to up to 515 tonnes in the long term. The facility, built at a cost of 11 billion CFA francs ($19 million), was funded by the state in partnership with the domestic private sector. Its construction began in 2023 and aims to better organize the commercialization of gold in the country, which has long struggled with controlling the informal gold mining sector.
The informal gold mining sector in Burkina Faso has been plagued by jihadist violence and smuggling. To address these issues, the government suspended exports of gold from informal mining in 2024. Mines Minister Yacouba Zabre Gouba stated that the suspension was intended to "better organize" the sector. Captain Traore has emphasized the need to prevent the fraudulent export of gold, which he believes fuels terrorism.
Captain Traore's administration has prioritized nationalizing key sectors, including gold mines, as part of its agenda to revitalize the country's industrial output and promote economic independence. The president has pushed for domestically driven and anti-Western policies, aiming to reclaim national sovereignty. The gold refinery is seen as a crucial step towards achieving this goal.
Gold has become a lucrative market, with prices hitting record highs in recent months. However, this has also led to an increase in trafficking, including for jihadists in the Sahel region. The Sahel region has been entrenched in battling jihadist groups, which control a large part of the territory and carry out frequent attacks.
The Burkina Faso government has taken steps to combat these groups, including the mass mobilization of a civilian volunteer force that supports the military. The gold refinery is expected to play a key role in disrupting the financial networks of jihadist groups by ensuring that gold is refined and sold domestically.
The opening of the gold refinery marks a significant achievement for Burkina Faso's economic development. With its capacity to refine gold locally, the country aims to retain the value of its gold production within its borders. The government hopes that this will lead to increased economic benefits and a reduction in the country's reliance on foreign markets.
Key points
- The refinery has an annual production capacity of 164 tonnes of gold, rising to a projected long-term capacity of up to 515 tonnes.
- Burkina Faso is the continent's third leading gold producer, producing over 94 tonnes of gold last year.
- The refinery was built at a cost of 11 billion CFA francs ($19 million) and funded by the state in partnership with the domestic private sector.
