Ouagadougou, Burkina Faso — 05 October 2012 – The government of Burkina Faso expects an increase in gold mining “’ its biggest source of foreign currency “’ to boost economic expansion to 7% next year, faster than the International Monetary Fund’s forecast.
Revealing this by phone from the capital, national budget director Hamadou Sangare explained to Bloomberg News that this outlook was part of the West African nation’s spending and revenue plan for next year, which was currently being debated by the Burkina Faso National Assembly.
Expansion in the landlocked country will outpace the African average of 5.8%, according to the IMF, which forecast growth of 6.4% for 2013 from 5% this year. Gold production is expected to increase to 65 to 70 tonnes by 2015, according to mines, quarries and energy minister Salif Lamoussa Kabore.
Burkina Faso began mining gold for the first time in 12 years when Somita SA, a unit of High River Gold Mines Limited, started its operation in 2007. The country has seven mines currently, including Iamgold Corporation’s Essakane SA, Semafo Incorporated of Canada and Endeavour Mining Corporation.
Mining is expected to bring revenue of US$1.7 billion to the country this year from US$1.4 billion in 2011, Kabore said.
Source: Bloomberg News. For more information, click here.