The mining sector is a powerful driver for Burkina Faso’s economic development. Mining activities have a significant impact not only on the State’s revenues – through taxes, duties, royalties, operating permits and dividends – but also on job creation, on the improvement of the social and economic infrastructure, on the improvement in the trade balance and on the national economy overall. Moreover, the dynamism of the sector in recent years – undoubtedly due to political will – means that since 2009, gold has become one of the country’s leading export products, making Burkina Faso the fourth-largest gold producer in Africa.
Burkina Faso Chamber of Mines
Burkina Faso’s Chamber of Mines (CMB) was established in July 2011 to represent the private mining sector and make it more efficient. We work in conjunction with the CMB, which is a strong contributor to the various debates on sustainable development concerns, including environmental and social challenges as well as the economic benefits for Burkina Faso.
An Initiative to Improve the Management of Mining Resources
A signatory of the Extractive Industries Transparency Initiative (EITI) for several years, Burkina Faso has been compliant with its provisions since February 2013. Under the initiative, mining companies declare the amounts they pay to the State. The EITI’s next report is due in 2015. The last report issued by the EITI shows an accrual of mining revenues in 2012 compared with 2011, due to a higher rate of tax.
• 57% increase in revenue to $371 million ($236 million in 2011)
• 26 reporting companies (16 in 2011)
SEMAFO’s Contribution to the Development of Burkina Faso
Through the Mana Mine, SEMAFO operates the third-largest gold mine in Burkina Faso. SEMAFO’s operations therefore have a strong direct and indirect economic impact on the Burkinabe economy. Direct economic value generated and distributed include revenues, operating costs, employee compensation, community investments, retained earnings and payments to capital providers and governments. Further details on our direct economic value may be found in our filings on www.sedar.com or in the Investor Relations section of this website.
The Corporation is a substantial economic contributor, both directly and indirectly, through employment, the purchase of consumables and services. In 2014, local procurement represented 70% ($131M) of the total goods and services expenditures ($183M), with almost half of local procurement expenditures relating to diesel for our operations. SEMAFO's operations contribute to the direct and indirect economic benefit of the local communities in a number of ways including:
• Salaries and wages paid to mainly national employees and contractors
• Training provided to the local workforce that offers jobs in the Corporation’s mining operations and gives transferable skills
• Job creation through the commissioning and expansion of existing projects
• Taxes paid to all levels of government
• Indirect job creation and small business development
• Payment to suppliers and local contractors
• Upgrading of infrastructure in local communities
• Financial support for community development including through SEMAFO Foundation