Burkina Faso Targets Bigger Royalties as Gold Production Drops
- New rules allow junta to take as much as 7% as royalty
- Gold production fell 13% last year on security concerns
A gold mine of Poura, Burkina Faso.
Photographer: DeAgostini/Getty Images
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Burkina Faso has revised its mining code to enable it to take more in royalties in boom times after gold production fell.
The West African nation increased the minimum royalty rate for spot price above $1,500 an ounce to 6% from 5%, the military government said in a decree seen by Bloomberg. The rate will rise to 6.5% for spot higher than $1,700 to $2,000 and further to 7% for spot above $2,000, it said.