BURKINA FASO

Brief history

BF

This African country was colonised by the French who occupied the region of Burkina Faso in 1896, subjugating the Mossi kingdom in Ouagadougou. It then became a protectorate and in 1898 the entire region was annexed to French control.

In 1919, Burkina Faso became a separate colony (named Upper Volta) and its first governor was François Charles Alexis Édouard Hesling. On September 5th 1932, the colony was dismembered and divided between Ivory Coast, Mali and Niger. Then it was reconstituted on September 4th 1947 with its original border.

Upper Volta obtained self-government on December 11th 1958 by becoming a republic and a member of the French Community (La Communauté Franco-Africaine) and two years later France granted independence.

The lack of oil in the subsoil makes the country politically stable and not subject to the interest of the large multinational companies, in fact it enjoys the long period of peace for over 30 years.

The political situation in the last year has further stabilised: on October 31st 2014, after a popular uprising concerning the Article 37 of the Constitution. It was allowing a further renewal of the mandate of the president, the corrupt president Blaise Compaoré who took power by military force in 1987. He had to resign and leave his position to an interim military junta, lead by colonel Yacouba Isaac Zida, in view of forthcoming elections.

On November 17th, the new civil President, Michel Kafando, is announced while the colonel Zida is assigned to form a transitional government.

The transitional government is formed in less than 15 days. All civil society is represented by an interim government. As expressly requested by the 2 main religious groups (the local population is divided in 45% Muslims, 40% Catholics and 15% Animists), the current Constitution is reconfirmed providing that no religious part can participate to the formation of any government.

In November 2015, new elections have been called.

The name is an amalgam of More burkina (“honest”, “upright”, or “incorruptible men”) and Jula faso (“homeland”; literally “father’s house”). 

Gold territories & Competitors

Here we have the operating mines in Burkina Faso

Extraction Typologies

Bullion1Artisanal Extraction

This type of extraction is the most present in the territory with authorised (about 10%) and unauthorised local people.
Unfortunately they, with their artisanal vehicles, lose 60% of gold on average during gold washing, they do not have the financial capacities to buy machineries that move soil and are forced to excavate burrows and tunnels from 40 to 80 m deep, with a high risk rate of disease (including mortality).

Bullion2Semi-industrial Extraction

These companies work with plants that move between 100 and 500 m3 per day, with a more common machinery (200-400 tons), some twenty workers and many phases manually processed by engineers.

Industrial Extraction

These companies work with plants that move 4,000-8,000 m3 per day and vehicles with a tonnage of above 50-70 t, which require investments above 20 million to put in place the plants.
The largest gold mine company in Burkina Faso is Iamgold Corporation with over 12 tons of extracted gold per year.
It is about 300 Km from Ouagadougou and will remain operative for about 12 years. The owners are Canadian.

Types of clients

The strong demand of gold in many economic sectors allows us a variety of potential buyers.
They will be divided mainly in these four categories: banks, local businesses, private entities and network marketing companies.

Banks


These credit institutions buy gold because it is a very good long-term investment thanks to the great intrinsic value of this metal which is not subject to write-downs unlike, for example, “paper-based” assets such as government bonds. By analysing that China, Russia, Saudi Arabia and the Philippines are lately buying huge quantities of gold, one can understand how things are changing: for the first time since 1988, even lead institutions have changed their policy and together they returned to be net buyers in the precious metal market.

Local businesses


Local businesses that have government licences buy gold directly on site in order to re-sell it to businesses and European and Asiatic companies.

Private Entities


More and more people nowadays understand how important is to diversify and invest in assets that offer the greatest guarantees. Especially savers, who buy gold bars in order to safeguard their own capitals, are increasing in the current macro-economic crisis and uncertainty situation of markets.

Network Marketing


In the last 20 years many network marketing  companies are having their business based on gold. These types of companies are constantly in need to source raw materials and so they are excellent buyers.

Burkina Faso, the honest homeland