(Ecofin Agency) - Burkina Faso’s industrial gold production has declined for three straight years since Nordgold exited its Taparko mine in 2022. Record-high gold prices now drive the government to boost export volumes for more revenue.

Burkina Faso’s Council of Ministers approved mining rights for Nordgold’s Niou deposit on April 24, 2025. The decision lets the Russian firm expand operations through its subsidiary Jilbey Burkina Sarl, which holds an 85% stake in the project.

The Niou deposit holds an estimated 20.22 tonnes of gold over eight years. Its annual output of 2.5 tonnes would equal nearly 5% of Burkina Faso’s 2024 production of 53.37 tonnes. The country’s gold output has dropped yearly since 2022, when Nordgold halted Taparko operations amid rising militant attacks.

Gold prices surpassed $3,000 per ounce this year. JP Morgan predicts $4,000 per ounce by mid-2026, valuing Niou’s future output at over $2.3 billion. Officials have not disclosed investment figures or construction timelines for the mine. Nordgold’s Yimiougou project, permitted in 2022, only launched production in early 2024 after delays.

Australia’s West African Resources plans to open its Kiaka mine by late 2025, targeting 234,000 ounces annually for 20 years. Canada’s Orezone aims to double Bomboré mine output to 250,000 ounces by late 2025.

Emiliano Tossou