Burkina Faso: Mineral resources

By African Bulletin on November 5, 2010

The strategy of the mineral resource development in Burkina Faso is based on the declaration of mining policy, as well as the law on the mining code of May 2003. These two clauses have established the legal and the regulatory competitiveness framework, namely reducing the tax rate on business profits (BIC) of ten points, the limitation of royalties, the disengagement of the State, the planning for a construction phase of mine supports, in addition to other tax and customs reliefs.

Despite the establishment of this favorable environment, challenges lie ahead for the country in managing and supporting the prospective growth of mining in order to better take advantage of its potential. In recent years, however, the development of the country’s resources has assumed greater significance and could become increasingly important because of the current low world price of cotton, the country’s principal export commodity. It is within this context that the task of rereading the declaration of mineral policy and mining code has been entrusted to a firm, enjoying a good reputation, with the aim to create global mining operations,  more modern and in conformity with the requirements of competitiveness in the current context of globalisation. Thus, the main innovations of the new mining policy statement are related to the development of the local processing of the minerals to answer the needs of the national market, taking into account the concerns of people living around the mining sites, the creation of a local development mining fund (LDMF), the motivation of the mining administration, and the establishment of a coordination framework for all actors in the mining sector. The proposed new sections concern the contribution to the Environmental Response Fund (ERF) and the translation of the law in regard to the Local Mining Development Fund declaration (DMFLD FMDL), to be funded by the state and the mining companies. The definition of these new directions and strategies will be submitted to the Government for its consideration and then to the National Assembly for adoption. All these innovations are aiming to make the law more attractive, while safeguarding both national interests and competitiveness of the Code at the international level.