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Burkina Faso gold prices inch back towards pre-COVID levels

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Author: Adama Ouedraogo, Coordinator of field operations and community relations for the Artisanal Gold Council and planetGOLD Burkina Faso

The following information was collected at mining sites and from certain gold buyers:

 

Gold Buyer, Burkina Faso Photo: Kevin Telmer, AGC
Gold Buyer, Burkina Faso Photo: Kevin Telmer, AGC

1 - Opening of ASM sites in Burkina Faso during the COVID-19 crisis

On May 04, 2020 the restriction of movement between cities in Burkina Faso  due to COVID-19 was lifted. The country’s ASM sites are now all operational. Mining workers who had left artisanal mining sites can now easily reach the field and continue their activities.

 

2 - Impact of COVID-19 on the price of gold at artisanal mining sites in Burkina Faso.

With the lifting of movement restrictions inside the country, local buyers operating at mine sites can be easily supplied with money by licensed comptoirs in the cities of Bobo-Dioulasso and Ouagadougou. Consequently, gold at artisanal sites can be easily bought and the price is gradually re-approximating its pre-COVID percentage of the spot price.

Information collected in the field on 6 May in three mining regions (information collected on 11 artisanal mining sites), shows the price offered to miners varied from 23,000 FCFA to 26,000 FCFA. The price per carat of gold (a typical Burkina Faso measure) on mining sites is on average 1,150 FCFA, or US$1.91/carat. (There are 24 carats in a gram).

The spot price for May 06, 2020 was US $ 54.71/g of pure gold or US $ 2.28 / carat.  On average then, Burkina Faso miners are receiving 83.8% of spot price for their gold.

This represents an approximate 10% decline from the pre-COVID price of 94% of spot price. However, it’s a significant increase on the 55% of spot price miners were receiving in the weeks immediately after the imposition of COVD-19 travel restrictions.

 

1 US$ = 606.8619 CFA
Artisanal mine sites, city, ANEEMAS Purity

 

(carat)

Price/carat

 

(CFA)

Price

 

(CFA/g)

Price

 

(US$/g

Price

 

(% spot)

Fandjora 22 – 23 1 150 26 000 42.84 83.13%
Moussobadougou 20 – 22 1 125 23 500 38.72 81.32%
Tangoani 21 1 100 23 000 37.90 79.51%
Djarkadougou 21 – 22 1 150 25 000 41.20 75.31%
Diebougou 22 1 150 25 000 41.20 83.13%
Gnikpière 22 1 150 25 000 41.20 83.13%
Moulé 22 1 150 25 000 41.20 83.13%
Gaoua 21 – 22 1 160 25 000 41.20 83.85%
Tonka-la-mine 22 1 160 25 000 41.20 83.85%
Bantara 20 – 22 1 160 24 500 40.37 83.85%
ANEEMAS 22 1 180 25 960 42.78 85.29%

ANEEMAS is the government agency empowered to purchase gold produced by artisanal miners.

 

3-Influence of COVID-19 on the access of gold panners to the market

Burkina’s artisanal miners do not have direct access to the gold market, they sell their gold on the mine site to local buyers who work for the approved comptoirs located in the cities of Ouagadougou and Bobo-Dioulasso.

Currently, there are no alternatives available to artisanal miners to improve the gold supply chain during this COVID -19 crisis.

 

4-The impact of COVID-19 on important livelihood issues in ASGM communities.

The prices of consumer products are stable and returned at the same cost as the prices before COVID-19.

Some mining materials such as dynamite are starting to run out. Prices for these items are increasing.

Best regards, Team Burkina Faso

Sources: site managers, artisanal miners, local buyers, ANEEMAS agents.

 


 

Adama Ouedraogo is the coordinator of field operations responsible for community relations for the AGC and planetGOLD Burkina Faso

The planetGOLD Burkina Faso project is working toward eliminating mercury in the ASGM sector by improving availability of mercury-free technologies, shortening the gold supply chain, and increasing artisanal and small-scale miners’ direct
access to the international market.

The planetGOLD Burkina Faso project is implemented by the United Nations Industrial Development Organization (UNIDO), co-financed by the Artisanal Gold Council, Argor Heraeus and the government of Burkina Faso, and executed by the Artisanal Gold Council.

Visit planetgold.org/burkinafaso to learn more and sign up for updates

 

This article was originally published on May 12 on the Artisanal Gold Council website

 

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