Ibrahim Traore Shocks The West By Constructing First Gold Refinery In Burkina Faso
During the colonial rule in Burkina Faso, France made deliberate efforts to keep the people deprived of their own natural resources and hindered their ability to benefit from them. The local population was never educated on how to exploit and develop their resources, ensuring their continued reliance on European countries even after achieving superficial independence. As a result, foreign companies, including those in the gold mining sector, now hold a significant share of control over the mines throughout Africa, including Burkina Faso. The lack of infrastructure for mining and refining gold has made it challenging for the government to regain control of the industry.
Captain Ibrahim Traore, who understood the harsh realities on the ground, chose not to immediately nationalise the gold mines upon coming to power. Instead, he waited until a gold refinery was established to handle all the mines and refine the gold for higher prices. Now, this has become a reality as Captain Ibrahim Traore has launched the construction of Burkina Faso's first gold refinery. This significant development will bring about lasting changes in the country's gold sector and serve as a form of punishment for foreign companies that have been exploiting and plundering Burkina Faso's gold for decades. However, it remains to be seen what form this punishment will take and how it will impact the West's gold market.
Earlier, Bloomberg reported that Burkina Faso's military government, known as the Hun, has laid out ambitious strategies to tighten its grip on the gold mining sector. The primary objective is to optimize the country's share of profits and drive sustainable development. The Hun is determined to secure a larger portion of the revenue generated from gold mining by re-evaluating existing contracts and establishing new fiscal arrangements with foreign companies. This includes increasing royalty rates, taxes, and dividends to ensure a fairer distribution of wealth derived from Burkina Faso's gold resources.